{"id":1342,"date":"2024-10-18T12:01:49","date_gmt":"2024-10-18T12:01:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=1342"},"modified":"2024-10-18T12:01:49","modified_gmt":"2024-10-18T12:01:49","slug":"sec-files-form-c-in-ripple-lawsuit-heres-what-they-appeal","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=1342","title":{"rendered":"SEC Files Form C In Ripple Lawsuit: Here\u2019s What They Appeal"},"content":{"rendered":"
\n

Late Thursday, the US Securities and Exchange Commission (SEC) has filed Form C in its case against Ripple Labs, specifying the grounds of its appeal against Judge Analisa Torres\u2019s final ruling from August 7. This filing, which was due by October 16, comes after the SEC\u2019s initial Notice of Appeal on October 2 lacked detailed arguments.<\/p>\n

Ripple Vs. SEC: Appeal Details<\/h2>\n

The SEC\u2019s appeal targets specific aspects of the summary judgment that were favorable to Ripple. Attorney James \u201cMetaLawMan\u201d Murphy commented on the filing, stating that the SEC is appealing the rulings on \u201cRipple\u2019s XRP sales through exchanges; Ripple\u2019s distribution of XRP to employees and others; and Garlinghouse and Larsen\u2019s sales of XRP on exchanges.\u201d<\/p>\n

\n

Ripple Appeal Update.<\/p>\n

The SEC has filed the Form C (a day late, in my view).<\/p>\n

The SEC is appealing the summary judgment ruling on: (1) @Ripple<\/a>\u2018s XRP sales through exchanges;
\n(2) Ripple\u2019s distribution of XRP to employees and others; and
\n(3) Garlinghouse and Larsen\u2019s sales of XRP\u2026 pic.twitter.com\/zkaGQMnSgl<\/a><\/p>\n

\u2014 MetaLawMan (@MetaLawMan) October 17, 2024<\/a><\/p>\n<\/blockquote>\n

Notably, the SEC does not seem to appeal the remedies and disgorgement ruling as well as the decision by Judge Torres that XRP itself is not a security. Murphy remarked via X, \u201cThis is what we expected. Mildly surprising that they did not appeal the $0 ruling on disgorgement<\/a>.\u201d<\/p>\n

Fred Rispoli, a pro-XRP lawyer and founder of HODL Law, weighed in<\/a> on the implications for Ripple\u2019s executives, Brad Garlinghouse and Chris Larsen. \u201cJust when they thought they were out, the SEC pulled Brad and Chris back in,\u201d he remarked. Rispoli pointed out that the SEC never stipulated to a dismissal of all claims against the two executives, only those related to institutional sales. \u201cThe SEC implies they are still coming after Garlinghouse and Larsen on programmatic sales<\/a>,\u201d he noted, expressing surprise that Ripple\u2019s legal team did not secure a more comprehensive dismissal in the initial agreement.<\/p>\n

Rispoli emphasized the gravity of the case now that it has reached the Second Circuit Court of Appeals. \u201cThe Second Circuit is the big leagues, and the SEC cannot afford to clown around like it has been at the district court level,\u201d he said. He suggested that the SEC recognized that pursuing disgorgement\u2014a financial penalty requiring the return of ill-gotten gains\u2014was unlikely to succeed on appeal, despite having argued for it before Judge Torres. \u201cIt wisely recognized disgorgement was a loser argument and has not raised it as an appellate issue,\u201d Rispoli commented.<\/p>\n

There is some procedural ambiguity regarding the timing of the SEC\u2019s filing. Murphy observed that while the SEC\u2019s Form C is dated October 16, the court\u2019s file stamp indicates it was filed on October 17. According to procedural rules, the SEC was required to submit Form C within 14 days of filing the Notice of Appeal, making the deadline October 16 at 11:59 pm EST. \u201cWe should find out soon whether the Second Circuit concludes that the SEC has missed the deadline,\u201d Murphy stated.<\/p>\n

Missing this deadline could have serious consequences for the SEC\u2019s appeal, as Bitcoinist reported<\/a> yesterday. Rispoli pointed out that the Local Rules of the Second Circuit (Rule 12.1(d)) state that failure to comply \u201cmay result in dismissal of the appeal.\u201d However, he tempered this by noting that appellate courts often grant leeway to federal agencies. \u201cEven a lame excuse from the government is likely enough to allow the court to let it slide,\u201d he remarked.<\/p>\n

However, Rispoli also has a few words of warning at the end that the SEC could still provide some nasty surprises. \u201cSEC has announced it could appeal any aspect of that. So there is the obvious (Programmatic Sales, Other Distributions) and the less obvious (whether XRP is inherently an investment contract). We won\u2019t know until the briefing comes out but no question the issues are at minimum what were raised in the request for an interlocutory appeal.\u201d<\/p>\n

At press time, XRP traded at $0.5474.<\/p>\n

\"XRP<\/div>\n","protected":false},"excerpt":{"rendered":"

Late Thursday, the US Securities and Exchange Commission (SEC) has filed Form C in its case against Ripple Labs, specifying the grounds of its appeal against Judge Analisa Torres\u2019s final ruling from August 7. This filing, which was due by October 16, comes after the SEC\u2019s initial Notice of Appeal on October 2 lacked detailed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-1342","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/1342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1342"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/1342\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}