The ongoing legal confrontation between Ripple, a prominent crypto payments company, and the United States Securities and Exchange Commission (SEC) is advancing to a critical phase. This week marks a pivotal moment as both entities prepare to proceed with their appeal process. The outcome of this legal battle is anticipated to have significant repercussions not only for Ripple but also for the valuation of XRP and the broader cryptocurrency industry.
Key Developments and Upcoming Deadlines in the Ripple and SEC Case
According to Eleanor Terrett, a journalist at Fox Business, this week is crucial for the Ripple and SEC lawsuit. The court has set October 16 as the deadline for the US SEC to submit a Form C. This procedural document is essential in the legal appeals process, outlining the specific aspects of the case the SEC intends to challenge.
Terrett disclosed via a social media post that the SEC’s Form C will reveal essential insights into its appeal against Judge Analisa Torres’ July 2023 decision, which determined that programmatic sales of XRP do not classify as securities. Similarly, Ripple is poised to follow suit by submitting its own Form C for a cross-appeal within seven days of the SEC’s filing. If the SEC files its Form C today, Ripple is expected to respond in the upcoming week.
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Ripple’s submission is anticipated to present its counterarguments, detailing the scope of its cross-appeal. Following the filing of both Form C documents, Ripple and the SEC will negotiate a briefing schedule. The SEC will then have up to 90 days to compile and submit its initial legal brief.
Implications of the Extended Legal Battle on XRP Prices
Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), provided insights into the timeline of the Ripple and SEC appeal process. Alderoty indicated that the SEC might utilize the full 90 days allocated for submitting its initial legal brief, suggesting a strategy to prolong the appeals process. This opening brief will comprehensively outline the legal arguments the SEC intends to present against Ripple and the favorable ruling from July 2023.
Once the SEC submits its brief, Ripple will have the opportunity to counter the SEC’s claims. According to Alderoty, the full briefing process between Ripple and the SEC is expected to extend into July 2025. This suggests that the legal battle, which began in December 2020, may span over four years, potentially reaching five years if a resolution is not achieved.
The protracted legal dispute could exert a notable impact on XRP prices. The cryptocurrency has experienced stagnation, largely hovering around the $0.5 mark since the SEC initiated its lawsuit. Although XRP occasionally sees minor surges to $0.6 during favorable market conditions, these increases are often short-lived, with the price reverting to the $0.5 range.
The outcome of this legal battle is pivotal for the future of XRP and could redefine regulatory stances within the cryptocurrency sector. As the process unfolds, stakeholders in the crypto market will be keenly observing the developments and potential implications of the Ripple and SEC confrontation.
