The Securities and Exchange Commission (SEC) has pushed ahead with its appeal against Ripple, submitting its Form C just 24 hours after the original deadline had passed. This move comes as the clock ran out, leaving many in the crypto community surprised.
SEC Does Not Challenge XRP’s Security Status
The SEC’s appeal does not contest the court’s earlier ruling that XRP is not a security. The agency is also not challenging the $125 million fine or the court’s decision to deny disgorgement.
Ripple’s chief legal officer, Stuart Alderoty, expected this, noting that XRP’s security status was discussed only in dicta, making it non-appealable. Alderoty reaffirmed on Twitter that the SEC’s lack of challenge on this point was no surprise.
Uncertainty Grows in Ripple Lawsuit
Despite the delay and missed deadline, the SEC’s decision to appeal has added further uncertainty to the ongoing legal battle. The agency’s move could prolong the case for another year, leaving the XRP community uncertain about the outcome.
Related article: Ripple CLO Discusses SEC Appeal Strategy and Timeline
When the SEC missed the Oct. 16 deadline to submit its appeal, many thought the agency had lost its opportunity to challenge the Ripple judgment. However, Ripple executives remained cautious, recognizing the SEC’s history of bending deadlines. Some confusion arose over the exact deadline, with some arguing it should have been Oct. 18. However, legal experts clarified that Oct. 16 was the correct date based on the original filing timeline.
Discrepancies in Appeal Filing Dates
Even after the SEC submitted its appeal, the drama continued. The filing showed two dates—Oct. 16 and Oct. 17—leading to further confusion.
The SEC’s Form C.
Some speculate that the discrepancy is due to a docketing lag. The SEC pulled the district court docket early Wednesday, but the court officially acknowledged it the following day.
Related article: Ripple Strikes Back: Cross-Appeal Targets SEC Verdict
The SEC’s lawsuit against Ripple, initially focused on whether XRP sales qualify as securities, appears increasingly weak. After three years of legal battles, a judge confirmed that retail XRP sales are not securities. The SEC’s broader regulatory approach, based heavily on enforcement actions against crypto firms, now faces increased scrutiny.