Marc Fagel, a former securities lawyer and former SEC official, provides insight into a recent filing submitted in the Ripple lawsuit.
In a startling development, the United States Court of Appeals for the Second Circuit filed an “Acknowledgment and Notice of Appearance Default Notice” in the SEC v. Ripple docket.
Popular XRP community figure Sherrie shared the filing on X yesterday.
Filed today: pic.twitter.com/IJwJhfdd9h
— Sherrie 🌸 (@CherryEmpress21) October 22, 2024
Second Circuit Notice Triggers Speculation in XRP Community
Per the filing, the Second Circuit emphasized that the appellee’s counsel failed to submit its notice of appearance on the October 18 deadline in accordance with the court’s rules.
The court warned that failure to file the appearance acknowledgment within 14 days of the notice might prevent the appellee’s legal counsel from presenting oral arguments unless special permission is granted.
Since the Second Circuit submitted the notice, some XRP proponents speculated that the notice was directed at the SEC. They suggested that if the regulator fails to comply with the directive, the Second Circuit might dismiss its appeal.
Notice Involves Ripple Co-founder
As this speculation gains momentum, Fagel provided clarity to the filing, emphasizing that it does not concern the SEC. According to him, the filing was directed at Ripple co-founder and chairman Chris Larsen, who was included as one of the appellees in the case.
Fagel indicated that Larsen’s legal counsel is yet to file their appearance notice in the case. Hence, the Second Circuit issued a 14-day extension for their compliance.
NOTE: This has nothing to do with the SEC, or any supposedly late filing (which wasn’t late). This is directed at Larsen, who has not yet filed his appearance in this case.
— Marc Fagel (@Marc_Fagel) October 22, 2024
However, if his counsel fails to submit their appearance on or before November 5, they risk being prevented from presenting oral arguments.
Ripple to File Form C This Week
In the meantime, the broader crypto community is anticipating Ripple’s Form C filing. Recall that the crypto payments company filed a cross-appeal notice on October 10, indicating plans to also challenge the district court’s ruling on its institutional sales of XRP, which were deemed investment contracts.
Shortly after the SEC filed its Form C last week, Ripple’s CLO Stuart Alderoty disclosed that the company would submit its pre-argument this week. For context, the filing is due on Friday, October 25, 2024.
Notably, Ripple is expected to make pre-arguments regarding why it believes Judge Analisa Torres erred in her institutional sales decision. Afterward, the parties will agree on when to submit their respective appeal briefs.
According to Alderoty, the Second Circuit might give the SEC 90 days to file its opening brief. The Ripple CLO speculated that the briefing schedule might end in July 2025.
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