Fox Business journalist Eleanor Terrett highlighted a crucial development in the ongoing legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple.
In a reply to well-respected attorney James Filan on X, Terrett noted that today is the day for the SEC to file its opening brief, and the regulator must do so before midnight.
In his post, Filan revealed that both parties have agreed to file a deferred appendix for the cross-appeals. This appendix, which contains key documents for the appeal, will be submitted 21 days after the appellee’s brief is served. However, the SEC’s priority is submitting its opening brief before midnight tonight—the January 15 deadline.
It’s opening brief day in the @SECGov’s appeal against @Ripple.
The agency must file it before midnight tonight. https://t.co/2ZE9KdswSs
— Eleanor Terrett (@EleanorTerrett) January 15, 2025
Significance of the Opening Brief
The SEC’s opening brief will outline the agency’s arguments challenging the court’s earlier ruling that XRP is not a security when sold to retail investors on secondary markets. This decision marked a significant setback for the SEC’s war on digital assets.
Failure to meet the deadline could result in the court dismissing the appeal. This outcome would benefit Ripple and XRP, reinforcing the earlier ruling that determined XRP is not a security. Such a dismissal could also have broader implications for the cryptocurrency industry, as it would limit the SEC’s ability to regulate other digital assets under similar frameworks.
Ripple, on the other hand, remains prepared to address the SEC’s arguments. The company’s legal team has consistently emphasized that XRP should not be classified as a security. Ripple CEO Brad Garlinghouse has expressed willingness to take the case to the U.S. Supreme Court if needed.
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The SEC’s Habit of Cutting It Close
The proceedings following the SEC’s appeal in early October 2024 show the regulator may have lost its willingness to pursue this case aggressively. A similar situation unfolded when the regulator was supposed to file Form C in late October for its appeal.
The SEC delayed this filing, causing speculation on the deadline and whether the regulator had missed it. The SEC filed its Form C at the last minute, and many in the community believe it will repeat this for its opening brief.
However, as one community member pointed out, this filing might be pointless. Donald Trump is set to take office as president of the U.S. in a few days. Trump is pro-crypto and has already nominated a pro-crypto successor to current SEC Chair Gary Gensler.
Because of this, many experts believe his administration will dismiss the lawsuit against Ripple and other similar cases, and provide crypto-friendly regulation for the market.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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