The US Securities and Exchange Commission (SEC) is reportedly proceeding with an appeal in its ongoing case with Ripple Labs. Fox Business Journalist Eleanor Terrett shared the update in an X post, citing a spokesperson from the agency. The Ripple lawsuit has caught the eye of the market of late.
“The appeal is proceeding normally, and the documents will be filed publicly soon,” the spokesperson noted.
This reveal comes amid speculations that the regulatory body had missed its appeal filing deadline. Some market participants noted that the SEC should file its pre-argument statement (Form C) on October 16.
– Advertisement –
Notably, popular crypto attorney MetaLawMan is among community members who believe the SEC’s appeal application deadline passed midnight yesterday. While he admits he may be wrong, he highlighted possible reasons the SEC has yet to file its appeal.
He pointed out that the missed deadline could be the SEC’s oversight or a technical glitch with the electronic filing system. He added that it could also be the SEC’s deliberate decision to abandon its appeal. Still, he said this seems unlikely because the agency cannot abandon an appeal without first reaching an agreement with Ripple.
The final point MetaLawMan noted is that the SEC agreed with Ripple to drop both appeals. Meanwhile, the Form C rule states that failure to file it by the deadline means dismissing the appeal. MetaLawMan emphasized that his deadline calculation follows from recognizing that the Notice of Appeal came on October 2.
The US SEC Confirms Form C Will be Filed Soon
Amid ongoing speculations, an SEC spokesperson confirmed the agency will proceed with its appeal normally. It is important to note that the commission docketed the appeal on October 4. Thus, the real deadline for filing Form C is likely October 18, meaning the SEC still has 24 hours.
After the SEC files its appeal, Ripple will have seven days to submit Form C. This will include further information regarding its cross-appeal. After that, both sides will proceed to a briefing schedule. The SEC’s first brief is expected within three months, and Ripple will then provide the agency with its brief.
It is still uncertain which aspect of the lawsuit the US SEC plans to appeal. However, market experts like Fred Rispoli predict the SEC will argue against XRP’s securities status on secondary exchanges.
Reaction from Ripple CEO
Brad Garlinghouse, Ripple’s CEO, has responded to the comments from the SEC spokesperson. Commenting under Terret’s post, Garlinghouse mockingly reiterated the SEC’s phrase, “proceeding normally.”
Garlinghouse claims that the agency sets up its regulations as it goes; therefore, opting to proceed with the appeal ordinarily was comical. Rispoli commented that the SEC operates above the law and can do whatever it wants. He said the agency will make excuses for missing the appeal deadline.
Other community members raised concerns about the US law allowing the SEC to continue after missing a critical deadline. They argue that the world might disregard the US judicial system if a U.S. court accepts the SEC’s appeal after the deadline.
