Updates in the Second Circuit appeal proceedings reveal the latest legal developments in the SEC vs. Ripple case. Emerging strategies suggest that the ongoing courtroom battle between the US Securities and Exchange Commission (SEC) and Ripple Labs has taken a new turn.
Despite launching his Senate race against Elizabeth Warren, pro-XRP advocate John Deaton has pledged to remain steadfast in representing XRP holders’ interests in the SEC versus Ripple case.
Ripple’s Cross-Appeal Filing Adds Pressure on SEC
Attorney James Filan reported that Ripple’s legal team filed a cross-appeal in response to the SEC’s ongoing litigation. Ripple’s filing, appearing on the Second Circuit docket, presents a strong defense strategy. It argues that the SEC’s classification of XRP as an unregistered security is legally flawed.
The company’s cross-appeal also emphasizes Ripple’s contention that XRP is not an investment contract. It pushes that XRP should not be regulated as a security, an argument grounded in legal precedent and market realities.
Jeremy Hogan, a prominent attorney, has provided ongoing analysis of the case. He highlighted key elements of Ripple’s arguments, detailing discrepancies in the SEC’s approach toward cryptocurrencies.
Hogan also noted that Ripple’s filing could shape a landmark decision in the crypto industry. This is more so if Ripple’s arguments influence the court’s interpretation of what constitutes security under US law.
Read More: Crypto Regulation: What Are the Benefits and Drawbacks?
This development comes after the US regulator appealed the Ripple (XRP) case. As BeInCrypto reported, the SEC seeks a “de novo” review after Judge Analisa Torres’ July 13, 2023, ruling. The judge had ruled in partial favor of Ripple’s token as non-security.
Adding to the legal tension, the SEC has requested an extension to file its “Principal Brief” in the case until January 15, 2025. If granted, this extension would provide the SEC with additional time to solidify its arguments against Ripple’s cross-appeal.
The extended timeline could allow the SEC to refine its stance and address criticisms that its approach to crypto regulation lacks consistency. The agency faces scrutiny for its perceived ambiguity around classifying digital assets.
The SEC’s requested extension comes as the agency grapples with multiple cases related to cryptocurrency and digital assets. This reflects the growing challenge of regulating a fast-paced sector without comprehensive legislative guidance.
With the SEC’s briefing extension request pending and Ripple’s cross-appeal now under review, the court’s eventual decision could have far-reaching consequences. It could potentially reshape the future of digital assets in the United States.
John Deaton’s Continued Role as XRP Advocate Despite Senate Race
Amid the high-stakes legal maneuvers, John Deaton, a vocal XRP advocate, has confirmed his ongoing involvement in the case. This is despite his recent decision to run for the US Senate.
“Senate race or not, I don’t walk away from what I started,” Fox Business correspondent Eleanor Terret reported, citing Deaton.
Notably, Deaton has acted as an “amicus” (friend of the court) for XRP holders. His comment highlights his dedication to representing their interests. Deaton is also committed to defending the right to participate in a fair and transparent cryptocurrency market.
This commitment, alongside his Senate aspirations, illustrates the broader political dimension of the SEC vs. Ripple legal battle. With his Senate run focused on issues including financial and cryptocurrency regulation, Deaton’s involvement in the Ripple case aligns with his campaign message advocating for clear and reasonable crypto policies.
He has previously criticized the SEC’s approach to the case, describing it as overly aggressive and detrimental to innovation within the US crypto industry. However, the outcome of this case holds significant implications for Ripple, XRP holders, and the entire crypto industry.
A ruling in favor of Ripple could set a precedent that influences how other cryptocurrencies are regulated in the United States. This could curb the SEC’s authority to classify tokens as securities without clearer legislative guidance. Ripple CEO Brad Garlinghouse is optimistic about a victory.
“I am so confident that we’re going to win the appeal and that would put a dagger in Gary Gensler’s whole agenda around crypto regulation…I’m not losing any sleep over it at all. I’m so confident about it because I believe we’re on the right side of the law. I think we’re on the right side of history,” Garlinghouse reportedly told Terrett.
Read more: Everything You Need To Know About Ripple vs. SEC.
Conversely, a ruling supporting the SEC’s claims could empower the agency to take similar actions against other crypto firms. This could shape the regulatory framework governing digital assets in the US. On this account, Hogan takes a more stance.
“Sometimes win vs. lose in these cases is not a clear line. Nevertheless, yes, I think there is an 80% chance Ripple comes away from the appeal in a better position than now,” Hogan expressed.
Amidst these developments, BeInCrypto data shows that the XRP price has fallen 0.84% in the past 24 hours, trading for $0.5239 as of this writing.
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