Ripple-SEC Lawsuit Escalates: Key Developments Impacting XRP

The ongoing legal dispute between the cryptocurrency payments firm Ripple and the United States Securities and Exchange Commission (SEC) is making a notable advancement this week. Both entities are gearing up to proceed with their appeal processes. This progression could significantly affect not only Ripple but also the XRP price and the broader crypto landscape.

Upcoming Developments and Critical Deadlines in the Ripple and SEC Case

As reported by Fox Business journalist Eleanor Terrett, today signifies a crucial date for the future developments in the Ripple versus SEC legal case. According to the Court’s guidance, October 16 serves as the ultimate deadline for the US SEC to submit a Form C. This type of filing is a procedural requirement detailing what a party plans to appeal as part of the legal process.

Terrett disclosed in a post on X (formerly Twitter) that the SEC’s Form C will include essential information about its intended appeal of Judge Analisa Torres’ July 2023 ruling, which determined that programmatic sales of XRP were not deemed securities.

Likewise, Ripple is poised to shortly follow the SEC’s initiation of the appeal. The company plans to file a Form C for its cross-appeal within seven days of the regulator’s submission. If the SEC files its Form C today, Ripple is expected to file its version in the upcoming week.

Ripple’s forthcoming filing is anticipated to outline its counterarguments, detailing the specifics of the cross-appeal. Once both Form Cs are submitted, Ripple and the SEC will negotiate a schedule for further briefings, after which the SEC will have up to 90 days to present its initial legal brief.

Prolonged Legal Dispute May Influence XRP Price

Terrett revealed that the timeline updates regarding the Ripple and SEC appeal process were shared by Ripple’s Chief Legal Officer (CLO), Stuart Alderoty in a detailed discussion.

Alderoty indicated that the SEC is likely to utilize the entire 90 days to submit its initial legal brief. This implies that the regulator may aim to prolong the appeal timeline as much as feasible. The opening brief will fully outline all the legal arguments the SEC plans to present against Ripple and the favorable ruling from July 2023.

Following the SEC’s initial submission, Ripple will have the chance to respond and counter the SEC’s claims. According to Alderoty, the comprehensive briefing process between Ripple and the SEC is projected to extend to July 2025.

This indicates that beginning in December 2020, when the regulator first initiated its lawsuit against Ripple, the legal contention is now set to span over four years, with a potential extension to five years if no resolution is reached. Such a protracted legal dispute could substantially impact XRP price, which has remained stagnant since the SEC’s lawsuit was filed.

The cryptocurrency has fluctuated around the $0.5 range for years, only experiencing minor increases to $0.6 when market conditions are more favorable. However, these price surges are typically short-lived as XRP often reverts back to the $0.5 level soon after.