This week marks a crucial phase in the ongoing legal dispute between Ripple, a cryptocurrency payments company, and the U.S. Securities and Exchange Commission (SEC). Both sides are gearing up for their next steps in the appeals process, which may significantly affect not only Ripple but also the price of XRP and the wider cryptocurrency market.
Upcoming Changes and Important Dates in the Ripple-SEC Case
Fox Business journalist Eleanor Terrett reports that today is pivotal for the progress in the legal conflict between Ripple and the SEC. The court has set October 16 as the deadline for the SEC to submit a Form C. This document details the specific elements that a party plans to challenge in an appeal.
In an update posted on X (formerly Twitter), Terrett mentioned that this Form C will shed light on the SEC’s intention to appeal Judge Analisa Torres’ ruling from July 2023, which determined that XRP’s programmatic sales are not classified as securities.
Following the SEC’s actions, Ripple is also poised to submit its own Form C for its cross-appeal within a week of the SEC’s filing. This means if the SEC files today, Ripple would likely follow up within the next week.
Ripple’s submission will outline its rebuttals and detail its counter-appeal. Once both Form C submissions are complete, Ripple and the SEC will agree on a schedule for further briefings, giving the SEC up to 90 days to prepare its initial legal brief.
Prolonged Legal Proceedings May Affect XRP Value
During a discussion, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, informed Terrett about the timeline for the Ripple-SEC appeal process.
Alderoty indicated that the SEC is likely to take the entire 90-day period to submit its first legal brief, hinting that the regulator aims to prolong the appeal process. This initial brief will contend all legal arguments the SEC has against Ripple and the favorable ruling from July 2023.
After the SEC submits its brief, Ripple will have the chance to respond and address the SEC’s claims. Alderoty anticipates that the complete briefing phase could continue until July 2025.
Notably, this ongoing litigation, which began in December 2020, could extend the legal struggle to nearly four years, possibly stretching to five if they don’t reach a resolution soon. This prolonged legal entanglement might notably impact the XRP price, which has remained stagnant since the lawsuit’s initiation.
The cryptocurrency has been fluctuating around the $0.5 range, with minor rises to $0.6 during favorable market shifts. However, such price spikes are generally brief, as XRP tends to revert back to the $0.5 level afterward.
