Ripple Dodges SEC Case Default with Last-Minute Legal Play

• Ripple co-founder has filed a Notice of Appearance in the SEC case.
• Ripple has neared the Form C deadline and is facing default warnings.
• Ripple’s legal battle with the SEC has shaped crypto regulations further.

As the clock ticked down to a critical court deadline, Ripple’s co-founder Chris Larsen made a strategic legal move that could shape the future of cryptocurrency regulation. Filing a Notice of Appearance at the eleventh hour, Larsen ensured that Ripple’s defense against the SEC remains robust and uninterrupted.

This unexpected turn has left the crypto community buzzing with questions. Why did Larsen wait until the last possible moment? What does this mean for Ripple’s ongoing battle with the SEC? The answers could have far-reaching implications for XRP holders and the broader crypto market.

Ripple Dodges Court Default

On October 22, the U.S. Appeals Court for the Second Circuit issued a warning to Ripple about a potential procedural default in the ongoing lawsuit with the Securities and Exchange Commission (SEC). 

The court notified Ripple that failing to submit the required Counsel Acknowledgment and Notice of Appearance by the October 18 deadline could jeopardize their ability to present oral arguments in the appeals process. In a swift response, Chris Larsen filed the Notice of Appearance , effectively preventing a procedural default. 

This move ensures that Ripple’s legal team remains fully engaged in the case and retains the right to argue in court. The timing, however, has raised eyebrows. Larsen’s decision to act at the last moment could be a strategic play to keep the SEC guessing or perhaps a reflection of internal deliberations within Ripple’s legal team. 

Regardless, it underscores the high stakes involved in a lawsuit that could set a precedent for how cryptocurrencies are regulated in the United States. Ripple’s Chief Legal Officer, Stuart Alderoty, has been vocal about the company’s confidence in their legal standing. 

After the SEC filed its Form C for the appeal, Alderoty stated, “That decision stands as the law of the land.” He emphasized that even if the SEC’s appeal were successful, it would not overturn Judge Torres’s original ruling that XRP is not a security.

Is Ripple’s Last-Minute Filing a Masterstroke?

The legal tussle has had a palpable impact on XRP’s market performance. With the looming uncertainty, XRP’s price has experienced volatility, trading under $1 for an extended period. Investors are anxious, and the last-minute legal filings add another layer of unpredictability.

Moreover, the extended duration of the lawsuit, now potentially dragging into mid-2025 due to the appeals process, keeps the crypto community in suspense. Ripple’s proactive steps, including the recent legal filing by Larsen, aim to reassure stakeholders of their commitment to defending XRP’s status.

However, some critics argue that such last-minute actions might indicate disorganization within Ripple’s legal strategy. Others believe it’s a calculated tactic designed to keep the SEC on its toes. Either way, the outcome of this lawsuit carries significant weight for the future of cryptocurrency regulation and investor confidence.

On the Flipside

• Ripple’s last-minute filings may signal internal uncertainties or strategic recalibrations.
• Prolonged legal battles can drain resources and divert focus from innovation and development.
• Market volatility may persist as the lawsuit continues, affecting investor confidence.

Why This Matters

Chris Larsen’s last-minute filing ensures that Ripple’s top leadership remains directly involved in the legal proceedings against the SEC. This active participation could strengthen Ripple’s defense and influence the lawsuit’s outcome, potentially setting a legal precedent for regulating cryptocurrencies in the United States. 

To learn more about the ongoing legal battle between Ripple and the SEC and its impact on XRP, read here:
Why Ripple’s Next Move Could Be Its Biggest Yet for XRP

Curious about Form C and its significance in the Ripple vs. SEC lawsuit? This article explains it all:
Ripple vs SEC: What Is Form C, and What Does It Mean for XRP?