The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken another twist. The SEC has officially announced its appeal against a recent ruling by federal judge Analisa Torres, which favored Ripple. This appeal comes just two months after Judge Torres issued her final judgment in the SEC’s four-year-long case against the company, adding a new chapter to this ongoing saga.
At the heart of the SEC’s appeal is the claim that the district court misapplied the Howey Test, a key standard for identifying investment contracts.
The SEC argues that this misinterpretation undermines its authority to regulate cryptocurrency assets, raising concerns about future crypto regulation.
Legal commentator FlyingEagle86 pointed out the timeline for the appeal process. The SEC typically has 30 to 40 days from the filing date of the Notice of Appeal to submit its opening brief. This document is essential for outlining the agency’s arguments to overturn the lower court’s decision.
After the SEC submits its brief, Ripple will have about 30 days to file its response, followed by a possible 14-day window for the SEC to reply.
Clarifying the Timeline
Legal expert MetaLawMan quickly clarified the timeline. According to him, the SEC actually has a 14-day period to file a form detailing the issues it plans to appeal. While he noted that his information might be outdated—having not dealt with a Second Circuit appeal since 2021—his insights provide valuable context for this high-profile case.
With both sides gearing up for a lengthy legal battle, staying updated is crucial. Ripple CEO Brad Garlinghouse recently shared his frustration, stating that if SEC Chair Gary Gensler were “rational,” the agency would have dropped the case long ago.
The legal saga also comes amid broader changes within the SEC, including the announced departure of Gurbir Grewal, Director of the Enforcement Division.
The crypto world waits with bated breath. What’s next?
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