SEC to File Opening Brief On Jan.16 Despite Ripple's Request for Delay

The legal battle began in December 2020 when the SEC accused Ripple of offering XRP as an unregistered security.

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have reached an agreement to file a deferred appendix for their ongoing cross-appeals. This appendix will include a collection of documents and evidence deemed relevant to the case. Both parties have stipulated that the deferred appendix will be filed 21 days after Ripple submits its opposition brief. This agreement is part of the broader legal proceedings between the two parties, which have been ongoing since 2020.

As part of its appeal, the SEC is obligated to file its opening brief on Monday, January 16. Previously, Ripple had petitioned the SEC to postpone this deadline, but the request was ultimately denied. Following this decision, Ripple's Chief Legal Officer, Stuart Alderoty, criticized the SEC's move, calling it a "waste of everyone's time and taxpayer money." Despite this setback, Alderoty expressed confidence in Ripple's legal standing and optimism that the court will affirm their prior victory.

To briefly recap the legal battle, the SEC filed a lawsuit against Ripple in December 2020, alleging that the company had sold XRP as an unregistered security. In 2023, the court ruled in favor of Ripple, holding that XRP sales to retail investors did not constitute a security offering. However, the SEC has since appealed this decision, which is currently being reviewed by the court.

In other news, SEC Chair Gary Gensler is set to step down on January 20, with Paul Atkins set to succeed him. Ripple hopes that this leadership change will present an opportunity to resolve the lawsuit. Alderoty has expressed optimism about working with the new leadership to reach a resolution. Additionally, Ripple CEO Brad Garlinghouse has criticized Gensler's approach, calling his enforcement-first strategy a "failure."

Meanwhile, XRP's price has surged significantly amid these developments. It rose from $2.52 to $2.84 overnight, marking a 12.64% increase within 24 hours. Over the past week, XRP has experienced a 22.9% gain. Its trading volume also jumped 19.01% to $11.98 billion, indicating a surge in investor interest. Notably, legal expert James Farrell has stated that only the court clerk can adjust filing deadlines in extraordinary circumstances. Hence, the SEC must adhere to the January 16 deadline as the clerk has not granted any extensions. Farrell estimates that the appeals process could conclude by April 2025, with settlement discussions potentially following.