Ripple CLO Discusses SEC Appeal Strategy and Timeline

Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), revealed crucial information regarding the company’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Alderoty told Fox Business that the SEC will file its pre-argument statement, Form C, on Thursday. This document will clarify the agency’s appeal strategy, a topic the XRP community has discussed extensively.

Earlier this month, the SEC’s decision to file a notice of appeal had an immediate impact on XRP, causing a notable drop in its price. This action followed the regulatory body’s ongoing legal efforts against Ripple. In response, Ripple has launched its own cross-appeal, signaling that the company will continue to defend its position vigorously.

Ripple Prepares Counter-Appeal

Ripple will file its own Form C within seven days of the SEC’s submission. Both parties will then agree on a schedule for the briefing process, which is expected to be drawn out. The SEC’s first brief, detailing its legal arguments, is anticipated to arrive in roughly three months.

The SEC lost on all key points—that’s why they appealed. Today, Ripple filed a cross-appeal to ensure nothing’s left on the table, including the argument that there can’t be an "investment contract" without there being essential rights and obligations found in a contract.
— Stuart Alderoty (@s_alderoty) October 10, 2024

Once the SEC submits its brief, Ripple will respond with a detailed rebuttal. Alderoty previously indicated that the SEC will likely target Ripple’s XRP sales on various trading platforms, as well as other related distributions.

While Ripple’s leadership remains confident that the company has a strong case, there is still some uncertainty about the outcome.

Ripple’s Fate Hinges on Judges

Attorney Fred Rispoli has suggested that the assigned judges could heavily influence the outcome. A panel of three judges who tend to side with the government could drastically shift the odds in favor of the SEC, with Ripple facing up to an 80% chance of losing if the court sides with the regulatory body.

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The legal battle is expected to continue for a significant amount of time, with the full briefing process and oral arguments potentially extending the case until 2026.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.