Ripple’s Latest Legal Request
Ripple Labs has officially asked for an April 16 deadline to file its cross-appeal brief in its ongoing lawsuit against the U.S. Securities and Exchange Commission. In support of the proposed schedule, the filing, which came on Jan. 23, includes Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. Cross-appeal briefs are major documents in court proceedings; they develop a party’s written argument against previous submissions.
Ripple’s filing comes after the SEC, on Jan. 15, filed an appeal against the 2023 ruling of the New York District Court that ruled XRP sales to retail investors were not considered a securities transaction.
SEC’s Arguments and Ripple’s Mixed Outcome
The SEC had maintained that XRP issued as employee compensation and used in business transactions must be considered as securities, an aspect the initial ruling failed to touch. Although Ripple termed the 2023 ruling a partial victory, it was ordered to pay more than $125 million in fines due to violations around institutional XRP sales.
This latest appeal may set the boundaries for securities laws as they relate to cryptocurrency. In the high-stakes case, a secure cross-appeal brief deadline is a procedural yet important step for Ripple.
Broader Implications for the Crypto Industry
The lawsuit has attracted much attention within the crypto community, particularly among XRP enthusiasts. Jeremy Hogan, attorney and partner at Hogan & Hogan, said on social media, “The only question here is-will the brief need to be filed at all?” His comments reflect a growing speculation that the SEC, now led by acting Chair Mark Uyeda, might reconsider its approach under a more crypto-friendly administration.
Members of the broader XRP community, often called the “XRP Army,” have been quite outspoken in questioning the motivations and ultimate goals of the SEC. Rumors that the agency could drop the case against Ripple and others have picked up with the appointment of Uyeda and broader support for digital assets by President Donald Trump.
A Pivotal Moment for Regulation
The case against Ripple filed by the SEC in December 2020 has far-reaching consequences on how cryptocurrency will be viewed in the United States. This could provide clarity on much-needed regulations for an industry that seems to be growing day by day-a potential precedent to set the handling of digital assets into the future.
With the deadline on April 16, all eyes are on this case as a factor that will shape the future of crypto regulation.
