The ongoing Ripple-SEC legal battle took another turn as the U.S. Securities and Exchange Commission (SEC) officially announced its appeal of a federal judge’s ruling against the agency. The appeal comes just two months after Judge Analisa Torres issued her final judgment in the SEC’s four-year-old case against Ripple.
At the heart of the appeal, the SEC argues that the district court misapplied the Howey Test—an essential standard for identifying investment contracts—thereby undermining the agency’s regulatory authority over cryptocurrency assets.
Confusion Over Appeal Deadlines
FlyingEagle86 weighed in on the appeal process, pointing out that the SEC generally has 30 to 40 days from the filing date of the Notice of Appeal to submit its opening brief. This document is critical in outlining the agency’s arguments for overturning the lower court’s decision. Following the SEC’s submission, Ripple would have about 30 days to file its response brief, with a potential 14-day window for the SEC to file its reply.
MetaLawMan Sets the Record Straight
MetaLawMan quickly jumped in to correct this timeline. According to his experience, the SEC has a 14-day window to file a form specifying the issues it plans to appeal. While acknowledging his information might be outdated—he hasn’t handled a Second Circuit appeal since 2021—his insight provided clarity on what’s next in this high-profile case.
The Stakes Keep Rising for Ripple and the SEC
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.
As the situation unfolds, the timeline and the SEC’s specific appeal points could have significant consequences for Ripple and the broader crypto industry.
