SEC Files Civil Appeal in Ripple Case: Timing Raises Speculation

• The SEC filed its civil appeal against Ripple’s XRP transactions but did not contest the ruling on XRP’s security status.
• The timing of the SEC’s appeal filing has sparked speculation, but legal experts consider the discrepancy insignificant.
• Ripple’s response to the SEC’s appeal is anticipated next week, as the case remains a critical issue for the crypto sector.

The United States Securities and Exchange Commission (SEC) has officially filed a civil appeal in its ongoing legal battle with Ripple, challenging the July summary judgment that favored the cryptocurrency company. The SEC’s submission, known as the Civil Appeal Pre-Argument Statement (Form C), was dated October 16, but the court’s file stamp records it as received on October 17. This discrepancy has sparked speculation regarding the timeliness of the SEC’s filing, as the appeal deadline is crucial to the case.

The primary and most persuasive argument of the SEC is based on three fundamental elements of Ripple’s XRP transactions. In particular, the regulator will want to challenge the court’s decision regarding the exchange sales of XRP that Ripple conducted for itself and others who subscribed, issuance of XRP to carbonate its employees and other individuals as well as top officials of Ripple, namely Brad Garlinghouse, and Chris Larsen. But Ripple’s chief legal officer Stuart Alderoty noted that the SEC did not appeal against the ruling wherein the court stated that XRP itself is not a security.

Filing Date Provides Questions on Deadlines Compliance

Despite the minor discrepancy between the dates, some members of the XRP community have questioned whether the SEC’s appeal was submitted within the appropriate timeframe. While the document was dated October 16, the court’s official record reflects a filing date of October 17, leading to concerns about the SEC potentially missing its deadline.

Legal Expert Dismisses Deadline Concerns

Former SEC regional director Marc Fagel, however, downplayed the significance of the date difference, suggesting it has no real impact on the case. Fagel explained that discrepancies between a document’s date and its filing stamp are common and unlikely to affect the case’s progression. “Nothing is delayed, and nobody is prejudiced by waiting,” Fagel remarked, indicating that the appeal will likely proceed as planned.

All eyes are now on Ripple’s legal team, with their response expected in the coming days. As the SEC continues to challenge key aspects of the ruling, the case remains a landmark battle for the cryptocurrency industry.