SEC Appeal Against Ripple Could Be Dismissed As Agency Misses an Important Deadline

The U.S. SEC appeal against the Ripple ruling could be dismissed as the regulator is yet to file its Form C detailing the aspect of the case it intends to appeal. 

Since the SEC filed its appeal notice, the broader XRP community has been looking out for the plaintiff’s Form C filing, which is expected to shed light on the upcoming appeal. This filing is due 14 days after the SEC submitted its appeal notice to the Second Circuit on October 2. 

Debate About the Form C Deadline 

There is an ongoing debate regarding whether the Form C deadline is set for October 16 or 17. Multiple sources, including Ripple’s CLO Stuart Alderoty, asserted that the deadline for filing Form C is October 16. The Ripple CLO made this known during a recent conversation with FOX Business journalist Eleanor Terrett. 

Interestingly, popular XRP community figure Sherrie shared a calendar indicating that the Form C deadline is October 16. 

The notice was filed on October 2nd. The count begins October 3rd: pic.twitter.com/Mf39OdLXMz

— Sherrie 🌸 (@CherryEmpress21) October 17, 2024

With only a few minutes left before October 16 ends, the SEC has yet to file the Form C in the public docket. 

SEC Case Could be Dismissed 

While it remains unclear whether the SEC will beat the deadline and file Form C before the end of today, it is worth mentioning that failure to file this form before the due date has significant implications. 

This could result in the dismissal of the SEC’s appeal, nullifying the regulator’s chance of prolonging the Ripple case beyond 2025. 

The Form C clearly states that failure to file the document within 14 days of submitting the appeal notice will result in a straightforward dismissal of the appeal. 

Appellate Court Could Be Lenient Toward SEC 

Meanwhile, top legal expert Fred Rispoli cautioned XRP community members not to get too excited about the SEC’s failure to meet the Form C filing deadline. 

Attorney Rispoli noted that while missing the deadline could lead to the dismissal of the SEC’s appeal, he indicated that appellate courts are usually lenient with federal agencies. 

“Even a lame excuse from the government is likely enough to allow the Court to let it slide,” Attorney Rispoli remarked.