Ripple vs. SEC Appeal Confusion: Missed Filing Raises Eyebrows, Sparks Speculation About Internal Issues

The U.S. Securities and Exchange Commission (SEC) has come under fire for confusion surrounding a key filing deadline in its ongoing appeal against Ripple Labs.

The U.S. Securities and Exchange Commission (SEC) is facing scrutiny after a key filing deadline in its appeal against Ripple Labs was missed, sparking confusion in the ongoing Ripple vs SEC case. The oversight has raised questions about internal issues within the agency under Chair Gary Gensler.

John Deaton’s legal news platform, CryptoLaw, highlighted the SEC’s apparent procedural lapse, suggesting it indicates broader regulatory mismanagement under Gensler. Ripple CEO Brad Garlinghouse criticized the SEC’s approach, accusing the Commission of using delaying tactics, which includes arbitrary rule-making.

Adding to the controversy, XRPP Productions tweeted a satirical remark poking fun at the SEC, which suggested the agency was being flippant about the filing deadline.

Date Discrepancies Fuel Ripple vs. SEC Appeal Confusion

MetaLawMan pointed out a discrepancy in the SEC’s filing, observing that Form C is dated Oct. 16 but was officially stamped on Oct. 17. This discrepancy has sparked speculation about whether the SEC missed its appeal deadline. He believes the Second Circuit Court will soon determine how this timing issue might impact the Ripple vs. SEC appeal process.

However, Eleanor Terrett followed up by stating that she had contacted the SEC for clarification. The SEC responded that the documents will be “filed publicly soon,” leaving some to wonder if they were filed earlier but appeared on the docket a day later.

What’s at Stake for Ripple?

Attorney Jeremy Hogan explained that the SEC’s appeal is focused on Ripple’s XRP sales and use as a payment method. He made it clear that the appeal does not seek to reclassify XRP as a security, a point that was settled in July 2023. Instead, the appeal is about financial penalties and compliance, keeping Ripple’s financial stakes high.

Ripple’s Chief Legal Officer, Stuart Alderoty, affirmed that the court's decision regarding XRP’s status as non-security remains unchallenged and stands as law.

The resignation of SEC Enforcement Director Gurbir Grewal just prior to the filing added an element of drama to the situation. This comes on the heels of criticisms from Magistrate Judge Sarah Netburn who had previously called out the SEC for its “hypocrisy” in handling vital documents.

Did the SEC Miss the Deadline?

Legal experts, including attorney Jeremy Hogan and former SEC lawyer Marc Fagel, clarified that the SEC may not have missed its deadline.

According to Hogan, the 14-day appeal window starts when the court dockets the Ripple vs SEC case, not when the SEC files the document. In this case, the court docketed the appeal on Oct. 4, giving the SEC until Oct. 18 to file Form C. This eliminates the immediate concern that the SEC missed the Oct. 16 deadline.

Fagel further explained that if the SEC had missed the deadline, the court would likely view it as a procedural mistake and not a sign that the agency is abandoning the Ripple vs SEC case. For now, the SEC maintains that the appeal is proceeding, although the agency’s credibility continues to be called into question.

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