Ripple Versus SEC: What Next After Unexpected XRP Ruling Appeal?

After weeks of speculation, the US SEC has finally appealed the Ripple lawsuit ruling, experts weigh in on what to expect now

A new twist has unfolded in the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC). On Wednesday, the regulatory agency appealed against Judge Analisa Torres’s July 13, 2023 landmark ruling, raising heightened discussions in the community.

Ripple Considering A Cross-Appeal

Stuart Alderoty, Ripple’s Chief Legal Officer, expressed disappointment over the SEC’s decision and noted that the firm is considering filing a cross-appeal. 

Spotlighting Alderoty’s comments, Fox Business journalist Eleanor Terrett says Ripple could appeal Judge Torres’ ruling on institutional sales or the $125 million penalty. Terrett highlighted that Ripple has 14 days to file a cross-appeal if it decides to do so.

Fred Rispoli, a popular legal practitioner, further outlined a possible timeline for the SEC vs. Ripple case in an X post. According to the details, the SEC brief is expected to be due on December 2, 2024. Rispoli believes the SEC will probably ask for a 30-day extension. This would put the due date to January 1, 2025, if the agency’s request is granted.

For the #XRPHolders, here is the SEC v. Ripple appellate timeline:

1. SEC brief likely due 12/2/24. SEC likely to seek permissible 30 day extension, so will be due shortly after 1/1/25.

2. Ripple will cross appeal. It’s opening brief will be due around the same time.

3. The…

— Fred Rispoli (@freddyriz) October 2, 2024

Rispoli noted that Ripple’s opening brief will be due around the same time if it decides to file a cross-appeal. The opposition briefs will be due around February 2, 2025. According to Rispoli, Ripple will likely take its extension to March 2, 2025. 

Consequently, Reply briefs will be due by the end of March 2025. Accordingly, an oral argument might be scheduled between September and October 2025. Finally, a ruling will be passed from the 2nd Circuit in January 2026 at the earliest. At the latest, Rispoli believes the ruling will be passed in March or April.

John E. Deaton Puts Up Defense for Ripple

Commenting on the SEC’s decision to appeal, pro-XRP lawyer John E. Deaton says the agency is pursuing an anti-crypto agenda. Deaton criticized the SEC for failing to admit that XRP is not a security. He cited the SEC and Telegram, where Judge Castel ruled that the Gram token, like Bitcoin, did not fall under security classification. 

Normally, a Candidate for U.S. Senate would probably not comment on the @SECGov’s decision to appeal a District Court ruling. However, I’m not your typical Candidate and I spent hundreds of pro bono hours and over $75K of my own money, fighting gross overreach and misconduct at… https://t.co/SNlxoy8tpW

— John E Deaton (@JohnEDeaton1) October 2, 2024

Deaton added that 75 years of case law established that anyone could market and sell anything as a security. However, the law did not consider the underlying asset as a security. 

He concluded that the SEC’s appeal wastes taxpayers’ money and snide remarks about the agency’s Chair, Gary Gensler.

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