Ripple Seeks April Deadline In SEC Legal Battle

According to Cointelegraph, Ripple Labs has formally requested an April 16 deadline for its cross-appeal brief in the ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). This procedural move was highlighted in a January 23 request by Michael Kellogg, a member of Ripple’s legal team, who noted that Ripple's CEO, Brad Garlinghouse, and co-founder, Chris Larsen, were part of this request. A brief deadline is a critical date by which a party must submit a written legal argument to the court, often following the filing of an opening brief by the appealing party. The timeline for such submissions, including any potential extensions, is determined by the specific court's rules handling the appeal. This development comes after a January 15 filing from the SEC, where the commission contended that the New York District Court erred in its ruling that XRP sold to retail investors were not considered securities. The SEC also argued that XRP distributed as employee compensation and in business dealings was incorrectly excluded from being classified as a security. The 2023 ruling by the New York District Court was seen as a partial victory for Ripple at the time. However, Judge Torres later ordered Ripple to pay over $125 million to the SEC for securities law violations, considering that XRP was also offered as part of institutional sales. Ripple's request has reignited attention on this significant crypto court case. There is speculation about whether the SEC might withdraw the case, especially with the recent appointment of crypto-friendly acting Chair Mark Uyeda, who was appointed by President Donald Trump. The SEC is reportedly contemplating dropping certain crypto enforcement cases. President Trump's administration has shown a favorable stance towards digital assets, fulfilling campaign promises such as pardoning Silk Road founder Ross Ulbricht, establishing a working group to explore a U.S. crypto reserve, and appointing David Sacks as the White House’s AI and crypto czar. The SEC initially filed its lawsuit against Ripple in December 2020, alleging that the company violated securities laws through the sale of its XRP cryptocurrency. This legal battle has continued to unfold, capturing the attention of the crypto community and beyond.