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Cross-border payments provider Ripple Inc. is facing procedural hurdles in its latest appeal by U.S. regulators in a protracted legal drama after it missed a key filing deadline.
On October 22, the Second Circuit Court of Appeals issued a notice of default in SEC v. Ripple. The notice clarified that the court has not received an authorization to appear and a notice to appear from Ripple’s legal team, which is due by October 18, 2024.
Ripple was given a 14-day extension to submit the necessary documents. If the company’s lawyers fail to meet this new deadline, they may not be allowed to present oral arguments in a future appellate court unless the court grants permission.
There was some speculation that the Securities and Exchange Commission may have missed the appropriate deadline for an appeal, but former SEC Commissioner Mark Fegel said this had nothing to do with the commission and more to do with Ripple. I made it clear that there is.
This has nothing to do with the SEC. It was directed at defendant/appellee Larsen, whose attorney has not appeared on the matter in a timely manner.
— Mark Fagel (@Marc_Fagel) October 22, 2024
Court ruling on XRP status remains in place
Ripple’s filing delays pose a significant risk to its defense strategy on appeal to the SEC. Renowned legal expert Fred Rispoli suggested that while the failure to file may seem inconsequential, it was still an avoidable mistake, especially considering the high legal fees Ripple is paying. .
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“Ripple failed to submit the form on time this time. It’s not a big deal, but it’s not something you’d want to see paying $8,000 an hour for legal services,” Rispoli opined. .
As previously covered by ZyCrypto, the SEC is investigating Ripple’s XRP sales through exchanges, the distribution of XRP to Ripple employees, and Ripple executives Brad Garlinghouse and Chris Larsen’s XRP exchanges. is appealing the summary judgment judgment regarding personal sales. Much to the relief of XRPArmy, regulators have not appealed the ruling that XRP is not a security.
Ripple and the SEC have agreed on a briefing schedule after the payments company’s impending filing, followed by the securities regulator’s filing, according to a timeline summary of the appeals process previously shared by Fox Business journalist Eleanor Tellet. They will be given up to 90 days to do so. Its first overview.
The briefing process is likely to last until July 2025, according to Ripple’s chief legal officer Stuart Alderotti.
