The legal dispute between the Securities and Exchange Commission (SEC) of the United States and Ripple Labs is about to move into a new stage as both parties get ready for a protracted appeals process.
The action, which started in December 2020, centers on whether or not Ripple sold XRP without registration and whether or not its cryptocurrency, XRP, qualifies as a security. The appeal is currently pending, and it is expected that the court case will last until 2026. This could have an impact on how cryptocurrencies are regulated in the future.
The filing of Form C by the SEC, which is required by October 16, 2024, is the next significant stage in the lawsuit. This document will highlight the particular appeals concerns that the agency is eager to pursue. In exchange, Ripple will submit its Form C no later than seven days after the SEC files its complaint.
Ripple will focus on the portion of the ruling that determined that some institutional XRP sales were unregistered securities sales in the cross-appeal.
Appeal Process Timeline
Following the filing of their Form C documents, the parties will collaborate to determine a deadline for submitting their legal papers. The SEC, in turn, will have up to ninety days to provide its legal arguments in its opening brief. The legal counsel for Ripple anticipates that the SEC will take the whole ninety days, and the brief should be submitted by the middle of January 2025.
Once the SEC’s brief has been submitted, Ripple will address the points brought up by the SEC. It is anticipated that both parties will exchange points of view, putting up their detailed cases until either mid-2025 or mid-2026, depending on how long it takes to determine merits. This timeline highlights the difficult-to-solve nature of the issues, and it appears that both parties are preparing for a protracted court dispute.
The decision of the appeal might have a big effect on the whole cryptocurrency market. The question of whether XRP is a security is still very much open, and the decision may have implications for the regulation of other digital assets.
Conclusion
The ongoing legal battle between Ripple Labs and the SEC is poised to significantly shape the future of cryptocurrency regulation. With the case set to stretch into 2026, the core issue of whether XRP should be classified as a security remains unresolved.
This appeal process, now entering a critical phase with the filing of Form C, highlights the complex and protracted nature of the dispute. The outcome could set a precedent for how other cryptocurrencies are regulated, potentially leading to stricter oversight in the U.S. crypto market.
As both parties brace for a prolonged court fight, the broader crypto community will be watching closely for any developments that could affect the classification of digital assets.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.