- Ripple has requested an April 16, 2025 deadline to file its counter-appeal in the ongoing legal battle with the SEC.
- The outcome of this case could redefine how digital assets are classified and regulated in the U.S. under securities law.
In a significant development in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Ripple has filed a motion with the United States Court of Appeals for the Second Circuit.
The company is seeking a deadline extension until April 16, 2025, to submit its counter-appeal in response to a district court ruling that largely sided with the SEC regarding XRP‘s classification as a security in specific sales.
The origins of this landmark case date back to December 2020, when the SEC accused Ripple of conducting unregistered securities transactions through the sale of its XRP tokens. Ripple has contested these claims, maintaining that XRP should be categorized as a digital currency, not a security.
However, a ruling by the New York District Court determined that certain institutional XRP sales did indeed qualify as investment contracts under the Howey Test, the legal standard for identifying securities. This decision led to a $125 million fine against Ripple and imposed constraints on its future sales of XRP.
Ripple’s Legal Strategy and Implications for the Crypto Market
In its latest court filing, Ripple emphasized the necessity of the requested timeline to prepare a robust counter-appeal.
The company aims to challenge key aspects of the district court’s judgment, which it argues could set a troubling precedent for the broader cryptocurrency industry. Brad Garlinghouse, Ripple’s CEO, and Chris Larsen, its Executive Chairman, have expressed their full support for the extension request, underscoring the high stakes involved.
Meanwhile, the SEC has already submitted its opening brief, adhering to the court’s established schedule. Legal analysts like Jeremy Hogan from Hogan & Hogan have noted that such procedural filings are standard but essential in a case of this magnitude.
Hogan has further highlighted the potential impact this case could have on how digital assets are regulated across the United States, with broader implications for market participants and future enforcement actions.
Ripple and the Broader Regulatory Landscape
As Ripple prepares to mount its defense, the cryptocurrency market is closely monitoring developments in this case. The legal battle has become emblematic of the struggle between innovation in blockchain technology and evolving regulatory frameworks.
The court’s final ruling could influence whether other digital assets are treated as securities, creating ripple effects (pun intended) for token issuers, exchanges, and investors alike.
The April 16, 2025 deadline, if granted, will be a critical juncture in the ongoing saga between Ripple and the SEC. Market participants are bracing for a decision that could either bring clarity to the industry or further complicate the legal landscape surrounding digital assets in the United States.