Cross-border payments provider Ripple faces a procedural obstacle in the latest appeal by the United States regulator in its protracted legal drama after failing to meet a key filing deadline.
On Oct. 22, the Second Circuit Court of Appeals issued an acknowledgment notice of default in the SEC vs Ripple case. The notice revealed that the court had not received the Acknowledgment and Notice of Appearance form from Ripple’s legal team, due on October 18, 2024.
Ripple has been given a 14-day extension to submit the necessary paperwork. If the company’s counsel fails to meet this new deadline, they may not be allowed to present oral arguments during the upcoming appeal hearing unless the court grants permission.
While there was speculation that the Securities and Exchange Commission had missed the appropriate deadline for its appeal, former SEC director Marc Fagel clarified that it had nothing to do with the Commission but rather with Ripple.
Court’s Ruling On XRP’s Status Remains Intact
Ripple’s filing delay poses a consequential risk to the firm’s defense strategy in the SEC appeal. Prominent legal expert Fred Rispoli suggested that while the missed filing may appear insignificant, it’s still an avoidable misstep, especially given the lofty legal fees Ripple is paying.
“This time Ripple failed to file a form on time. Not a big deal, but also not the kind of thing you want to see when paying $8,000 per hour for legal services,” Rispoli opined.
As ZyCrypto previously covered, the SEC is appealing the summary judgment ruling on: Ripple’s XRP sales through exchanges, Ripple’s distribution of XRP to employees, and Ripple executives Brad Garlinghouse and Chris Larsen’s personal sales of XRP on exchanges. Much to the relief of the XRPArmy, the regulator is not appealing the ruling that XRP is not a security.
According to a rundown of the timeline of the appeals process shared previously by Fox Business journalist Eleanor Terrett, Ripple and SEC will then agree on a briefing schedule after the payment company’s imminent filing, and then the securities regulator will have up to 90 days to file its first brief.
The briefing process will likely extend through July 2025, per Ripple’s top legal officer, Stuart Alderoty.
