The United States Court of Appeals for the Second Circuit has ordered the submission of the SEC vs. Ripple brief by January 15. The court also said the case between the regulator and Ripple and its executives risks being thrown out if they fail to submit the brief by the said date.
Defense attorney and former federal prosecutor James Filan said the Securities and Exchange Commission (SEC) filed a scheduling notification under its case against Ripple and its executives at the Second Circuit.
In the filings, the regulator asked for an extension to January 2025 after it failed to meet up with the previous deadline to submit an appeal.
Second Circuit Court approves SEC’s new deadline
The Second Circuit approved the regulator’s extension, asking it to keep to the new deadline of January 15. The court also asked the regulator to dismiss its appeal if it cannot follow the new deadline.
The court also said that the regulator would not be allowed to file a new motion to extend the deadline or make other changes to the filing. The court gave the order at the Thurgood Marshall United States courthouse on October 31.
The Securities and Exchange Commission filed a motion to appeal an earlier not-guilty verdict in favor of Ripple. In the previous verdict, Judge Annalisa Torres ruled that Ripple had not violated securities law in its XRP sale to investors. In September, rumors of a possible appeal filled the market space after Fox Business journalist Eleanor Terrett gave hints after a brief conversation with a former SEC lawyer.
United States crypto enthusiasts disagree with the SEC
On October 18, the SEC filed its civil appeal pre-argument (Form C) against Ripple. In its filing, the regulator appealed programmatic sales made by Ripples to crypto exchanges and the distribution of XRP tokens to its employees.
United States crypto enthusiasts and the larger Ripple community have called out the SEC. They feel that the regulator wants the protracted legal battle to extend till next year. Most went on social media to express frustration at the regulator and its never-ending battle with Ripple.
Users claimed that the regulator intentionally delayed its filing to the last minute to frustrate the defense and the larger crypto community. One user on X said the regulator is just trying to delay another inevitable Ripple victory. The user also said he wants Donald Trump to be elected so he will fire Gary Gensler and withdraw the case.
The Democrat presidential candidate Donald Trump promised to end the reign of Gary Gensler as SEC Chairman when he is elected as the new president of the United States in November. He mentioned it while speaking at the Bitcoin Conference in July.
However, Ripple is confident that they will emerge victorious at the appeal. CEO Brad Garlinghouse and legal officer Stuart Alderoty said the firm will win. The lawyer said the SEC adopted this strategy to confuse them and the entire market.