Ripple Demands April 16 Deadline for Cross-Appeal Brief Vs SEC

Ripple Labs officially requested a new deadline for filing its cross-appeal brief in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

Ripple’s legal team submitted the request for an April 16, 2025 deadline. The crypto giant continues its fight over the SEC’s classification of XRP sales.

This move comes on the heels of the SEC’s January 15 appeal. It challenged a 2023 ruling from the New York District Court.

The court had partially ruled in favor of Ripple. It had determined that XRP sales to retail investors were not classified as securities. However, the SEC’s appeal contends that these retail sales should indeed fall under securities laws.

SEC’s Position: XRP as Securities

The SEC’s case centers on the argument that XRP sales, especially those made to retail investors, should be classified as securities.

The agency’s position stems from its belief that Ripple’s sales to employees and business partners were similar to traditional securities transactions.

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According to the SEC, these sales and distributions should have been subject to regulatory oversight. They potentially fall under the Securities Act.

In 2023, Ripple won a partial victory when the court ruled that XRP sales to retail investors were not securities. This decision helped Ripple maintain its position as a major player in the crypto market.

However, Ripple was still required to pay over $125 million in penalties. This was for institutional sales that the court deemed violations of securities regulations.

The SEC’s appeal seeks to overturn this ruling. According to the regulator, the lower court erred in its judgment, particularly regarding the classification of XRP sales.

The dispute highlights the ongoing debate over how digital assets should be treated under U.S. securities laws.

Ripple’s Cross-Appeal Request

Ripple’s legal team, led by Michael Kellogg, filed the request for an April 16 deadline to file their cross-appeal brief.

This timeline aligns with the court’s schedule for the SEC’s appeal. It ensures both parties have ample time to prepare their arguments.

Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larsen have supported this filing, signaling the company’s continued commitment to defending its position.

The cross-appeal brief is crucial for Ripple as it seeks to solidify the court’s earlier decision, which allowed the company to avoid securities classification for retail XRP sales.

Jeremy Hogan, a partner at Hogan & Hogan and a well-known commentator on crypto law, offered his insights on the matter.

In a post on social media, Hogan explained that Ripple’s request for a deadline is standard procedure, but the bigger question remains: will the SEC continue to pursue the appeal, or will it reassess its position as the case evolves?

The potential withdrawal of the SEC’s appeal has been a topic of speculation in legal circles. Some observers believe that the agency may back down, given the complex nature of the case and the increasing scrutiny of its handling of crypto-related regulations.

Ripple’s partial victory in 2023 was a significant moment for the cryptocurrency industry. The case has become a symbol of the ongoing struggle between regulators and the emerging digital asset sector.

The New York District Court’s ruling had provided some clarity on the classification of XRP, a major cryptocurrency, and raised questions about how other tokens will be treated under U.S. law.