Is the SEC’s Appeal Strategy Crumbling?

The SEC’s recent appeal of the Ripple case has caused quite a stir in the legal community, with MetaLawMan and several key figures sharing their thoughts on X. The main point of discussion stems from two different dates on the SEC’s Form C, dated October 16 and file stamped on October 17, sparking confusion over whether the SEC missed the appeal deadline.

The case is getting intense as no one knows what the SEC planning behind the curtains. However, one analyst who has found some loopholes in the SEC’s filling is spilling the beans on the SEC’s missed deadline drama. 

Here’s What the Legal Experts Think on SEC’s Missed Deadline!

MetaLawMan was among the first to note the discrepancy between the dates on the SEC’s Form C and the court’s file stamp. The SEC document, dated October 16, appeared officially stamped a day later, on October 17. This led to questions about whether the SEC missed the crucial appeal deadline. MetaLawMan hinted that the Second Circuit Court will soon address whether the timing issue could impact the appeal process. 

However, Eleanor Terrett followed up by stating that she had contacted the SEC for clarification. The SEC responded that the documents will be “filed publicly soon,” leaving some to speculate if they were filed earlier but appeared on the docket a day later.

Attorney Jeremy Hogan added depth to the discussion, explaining what the SEC is appealing—Ripple’s sales of XRP on exchanges and XRP’s use as a payment method. He clarified that the ruling won’t affect XRP’s classification as a security, which remains off the table. Hogan pointed out that the SEC’s approach is about money, with the appeal concerning financial damages and compliance orders.

Additionally, He criticized the agency for dropping the chance to try Ripple executives Brad Garlinghouse and Chris Larsen for “aiding and abetting” allegations, only to now attempt to revive these claims on appeal. Hogan called this a “chicken move,” implying that the SEC lacked the confidence to bring the case before a jury but is now looking to backtrack.

CryptoLaw echoed these sentiments, they highlighted that the SEC originally chose not to pursue a District Court trial involving Garlinghouse and Larsen but now seeks to reintroduce these claims through the appeal process. This move has sparked further debate about the SEC’s overall strategy and its fairness in pursuing the case.

Ripple’s Financial Stakes

Despite its complex nature and lack of legal clarity, Hogan emphasized the financial angle in the Ripple vs. SEC case. Meanwhile, the SEC’s re-appeal may impact Ripple’s compliance requirements, yet it may focus solely on the monetary part. If Ripple were to lose the appeal, it might face further financial penalties or restrictions on its operations, but XRP’s security classification would remain unaffected.

As of now, we cannot say what SEC is planning to appeal but given the current scenario, there is a lot more left in the Ripple vs SEC case. What do you think?