Story & Headline updated: October 18th. 10:45 am

The U.S. Securities and Exchange Commission (SEC) has filed a last-minute appeal to Judge Analisa Torres' ruling in the XRP case. The SEC is disputing several key elements of the decision, including the rulings that cleared Ripple executives. The outcome of this appeal could significantly influence the future of cryptocurrency regulation.

The U.S. Securities and Exchange Commission (SEC) missed its original deadline of October 16th. According to court filings, the SEC was required to file Form C, its pre-argument statement, within 14 days of its notice of appeal on October 2.

Failure to meet the deadline could have led to the appeal being dismissed.

As news about the missed deadline spread, Fox Business journalist Eleanor Terrett took to X to share that an SEC spokesperson said the regulator's appeal documents "will be filed publicly soon," to which Ripple's CEO Brad Garlinghouse replied:

"Proceeding normally for an agency that makes up their own rules as they go!"

The SEC, led by Chair Gary Gensler, has faced persistent allegations of regulatory inconsistency and overreach and is currently the subject of a lawsuit filed by several crypto firms. Critics argue that the agency’s enforcement actions often seem to reflect its own agenda rather than adhering to clear and established regulatory guidelines.

On October 10, Bitnomial Exchange filed a lawsuit against the SEC over its attempt to regulate Bitnomial's planned XRP USD Futures contract. The contract, which is regulated by the Commodity Futures Trading Commission (CFTC) and was certified in August following Judge Torres' ruling that XRP is not a security, is contested by the SEC, which claims it falls under their joint jurisdiction as a security future. The exchange is seeking a court ruling to reaffirm the CFTC's authority and clarify regulatory boundaries for digital asset derivatives.

According to attorney Fred Rispoli, the SEC will likely face no consequences for missing the deadline: "Sorry to say, appellate courts give A LOT of leeway to federal agencies. Even a lame excuse from the government is likely enough to allow the Court to let it slide."

Ripple has until October 24 to file its own Form C to provide more details about its cross-appeal.

XRP prices saw a 2% jump yesterday, trading around $0.55, as the market speculated on the SEC’s potential failure to meet its appeal deadline. The price saw a low of $0.543 and a high of $0.561, but today, the price has steadied after news of the late appeal.

Ripple's token also saw an increased interest following the news that Chris Larsen, co-founder of Ripple and Executive Chair, donated $1 million in XRP tokens (1,754,815.29 XRP) to the super PAC Future Forward, which is supporting Vice President Kamala Harris’ presidential campaign. According to Federal Election Commission filings, Larsen has donated around $1.9 million to Harris and her campaign so far.

Larsen, who has previously donated to candidates from both the Republican and Democratic parties, indicated that Harris' deep connections to Silicon Valley and her understanding of the innovation economy make her a more favorable candidate for crypto leaders.

Larsen also told CNBC that Harris has a "more pragmatic approach" to regulating digital assets, in contrast to the aggressive enforcement actions taken by the SEC.

The donation stands out in an election cycle in which cryptocurrency executives have poured millions into the campaigns of Republicans, especially Donald Trump. Alderoty donated $300,000 to Trump's 47 Committee last year. According to CNBC, Trump’s campaign alone has received over $4 million in virtual tokens, and he has actively courted the crypto industry, even speaking at a major Bitcoin conference earlier this year.

The Timeline

  • October 24, 2024: Ripple's own deadline to provide Form C.
  • October 16, 2024: The SEC missed its deadline and failed to provide Form C detailing the appeal.
  • October 10, 2024: Ripple filed its notice of cross-appeal.
  • October 2, 2024: The SEC filed its notice of appeal.
Ripple Faces SEC Appeal Again Amid Global Expansion and Stablecoin Launch
While Ripple pushes forward with its ambitious expansion plans in Dubai and Brazil, and prepares for the launch of its RLUSD stablecoin, the blockchain giant now must prepare to counter the U.S. agency’s appeal.
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  • August 7, 2024: Judge Torres ordered Ripple to pay $125 million in civil penalty.
SEC vs. Ripple: End in Sight as Parties Argue Over Remedies
More legal tussling as the blockchain company claims that the so-called Fox Declaration should have been classified as expert testimony, not “standard summary evidence,” as the SEC claims.
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  • May 6, 2024: SEC filed its remedies reply brief under seal, addressing Ripple's motion to strike the Fox Declaration.
  • May 2, 2024: Ripple filed its reply brief, challenging the SEC's classification of Andrea Fox's testimony.
  • April 29, 2024: SEC countered Ripple's objections, asserting the Fox Declaration as summary evidence for calculating disgorgement.
Ripple Opposes SEC’s Proposed $2 Billion Fine in XRP Lawsuit
The firm calls the penalty “draconian” and unjustified, arguing that a fine closer to $10 million would be more appropriate.
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  • March 22 to May 20, 2024: Proposed timeframe for submissions and redactions for the SEC and Ripple.
  • April 22, 2024: Ripple filed its opposition against the SEC's fine request and a motion to strike expert testimonies due to "sandbagging."
SEC Demands Nearly $2 Billion Penalty From Ripple Labs
Ripple faces a hefty potential financial penalty following a new proposal from the SEC. The firm maintains the sales were legal and plans to contest the charges in April.
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  • March 25, 2024: The SEC filed a proposal for judgment, demanding nearly $2 billion in penalties against Ripple.
  • October 23, 2023: The SEC voluntarily dismissed charges against the individual defendants (Garlinghouse & Larsen) with Judge Torres' approval.
SEC Loses Motion for Appeal Against Preliminary Ripple Judgement
In another victory for Ripple, a federal judge has dismissed the SEC’s appeal request, paving the way for a final trial in April. Ripple has also recently secured a Singapore license, solidifying its commitment to the Asia Pacific expansion.
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  • October 4, 2023: Ripple's Singapore subsidiary obtained its license to operate in the country. The trading volume of XRP nearly doubled.
  • October 3, 2023: Judge Torres dismissed the SEC's request for an interlocutory appeal, as it does not meet the exceptional circumstances necessary.
Ripple Set to Fight SEC’s Appeal Against July’s Court Ruling
The Ripple vs SEC case is sadly still far from being settled. In mid-August the judge granted the SEC’s request to file an interlocutory appeal, although Ripple now claims the regulator has failed to satisfy all the prerequisites necessary to justify this.
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  • September 8, 2023: The SEC's deadline to file its response.
  • September 1, 2023: Ripple filed its response to the appeal and stated that the SEC lacked any legal grounds for the appeal's success or relevance.
  • August 18, 2023: Court deadline for the SEC to file its appeal.
  • August 15, 2023: Judge Torres granted the SEC's request to file an interlocutory appeal. She also filed a notice of appearance for an investment banker declarant.
Ripple Secures a Partial Win Against the SEC
A U.S. judge ruled yesterday that Ripple’s XRP token is not a security for programmatic sales. Several exchanges are planning to relist XRP on their platforms following the ruling, and many major crypto prices saw a boost.
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  • July 13, 2023: Judge Torres ruled that XRP is not a security in the case of programmatic sales but that the token does meet the definition of security for sales made to institutional investors.
Ripple vs SEC: Unsealing the Hinman Speech
SEC lawsuits against Coinbase and Binance, the upcoming unveiling of crucial documents, House hearings on the future of crypto: the end might be near for Ripple in its ongoing legal dispute with the SEC.
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  • June 13, 2023: The Hinman documents were expected to be released.
  • June 5, 2023: The SEC removed Hinman's biography from its website.
  • May 19, 2023: Reports emerged that the SEC and Ripple filed a joint letter requesting an extension to submit the Hinman speech.
  • May 16, 2023: Judge Torres rejected the SEC's motion to keep the Hinman speech sealed.
SEC vs Ripple: Ruling Expected Anytime Soon
The protracted legal dispute between Ripple, a California-based tech company, and the U.S. SEC has lasted for more than 28 months, prompting widespread speculation regarding the date of the final ruling. Ripple supporters suggest that the verdict may be announced by the end of April.
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  • April 18, 2023: SEC Chair Gary Gensler testified at a congressional hearing without revealing whether ether was considered a security.
  • April 16, 2o23: John E. Deaton shared a 2018 video featuring Tim Draper and Gary Gensler discussing potential lawsuits and the influence on financial regulators.
  • March 6, 2023: Judge Torres issued an initial ruling excluding expert testimony from the summary judgment process in Ripple's legal battle with the SEC.
Ripple vs SEC Updates
The ongoing dispute between Ripple and SEC is closely followed by crypto participants and investors alike, with many anticipating the outcome’s potential impact on the market.
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  • March 3, 2023: Ripple filed a Supreme Court letter to Judge Torres.
  • January 2023: Multiple organizations, including Coinbase, submitted amicus briefs in support of Ripple.
  • November 30, 2022: SEC and Ripple submitted final submissions to the summary judgment motions.
  • November 7, 2022: The LBRY blockchain lost a similar case against the SEC, resulting in a decline in XRP's value.
  • September 17, 2022: Both the SEC and Ripple filed motions for summary judgment.
  • January 24, 2022: Judge Netburn granted the SEC until February 17 to appeal the decision regarding sensitive government documents in the case.
  • August 31, 2021: Ripple filed a motion requesting the SEC disclose its internal crypto trading policies.
  • June 14, 2021: The SEC's deadline for disclosing internal crypto trading policies was extended.
  • April 13, 2021: SEC Commissioner Hester M. Peirce published the Token Safe Harbor Proposal 2.0.
  • March 22, 2021: Judge Netburn distinguished XRP from BTC and ETH in terms of currency value and utility.
  • March 8, 2021: The SEC requested an immediate hearing in response to Ripple's arguments.
  • March 3, 2021: XRP holders led by John E. Deaton contested the SEC's lawsuit, arguing that XRP is not a security.
  • December 21, 2020: The SEC filed a lawsuit against Ripple Labs, Garlinghouse, and Larsen.
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