Alderoti also emphasized that the SEC cannot submit new evidence or force Ripple to submit further evidence.
Ripple’s Form C filing sparked a debate within the legal community focused on institutional sales and fair notice. Bill Morgan, a lawyer representing cryptocurrencies, commented on the filing:
“Ripple’s cross-appeal targets essential ingredients issues, institutional sales, fair notice defenses, and injunctions that are not sufficiently clear and specific.”
In a final ruling, Judge Annalisa Torres granted the SEC’s request for injunctive relief and ordered Ripple to comply with U.S. securities laws. The SEC sought an injunction to prohibit the sale of XRP to US institutional investors. Ripple is likely seeking clarification regarding which court granted the SEC’s request for an injunction that does not prohibit compliant sales of XRP to institutional investors.
Bill Morgan, a lawyer for cryptocurrency advocates, said of the injunction:
“I was also surprised by the form of the injunction and the breadth of its content when the final order was made. Is this typical? Australian courts issuing injunctions restraining people from following the law. I can’t remember.”
SEC’s delay in appeals draws criticism
Meanwhile, the SEC’s approach to the appellate process drew criticism from investors.
On Thursday, October 24, the SEC requested a 90-day extension to file opening briefs related to the appeal, extending the deadline to January 15, 2025.
Morgan commented on the SEC’s request for an extension:
“Fifteen months ago it was so urgent that they wanted an interlocutory appeal, but now the SEC is filing everything at the last possible date.”
In August 2023, the SEC filed an interlocutory motion seeking leave to appeal the ruling regarding the programmatic sale of XRP.
If Judge Torres grants the motion, the Ripple case will be put on hold until the appeals court concludes before the case continues. However, Judge Torres denied the motion, forcing the SEC to wait until the final decision to appeal.
Given the SEC’s request for an extension, the appeals process could end in 2026, in line with pro-crypto attorney Fred Rispoli’s prediction. Uncertainty regarding the appeal could keep XRP pinned below the important $0.55 handle.
outlook
Investors should track SEC appeal-related developments and US presidential election news, which can have a significant impact on XRP price movements. Stay up to date with the latest news and analysis to better manage your exposure to XRP and the broader crypto market.
