Ripple vs SEC Case Confusion; The Truth Behind Form C Filing

The ongoing legal battle between the United States Securities & Exchange Commission (SEC) and Ripple Labs has seen a new wave of uncertainty. The SEC’s deadline for filing Form-C in its case against Ripple is set for October 18, 2024. This wreaks confusion over whether the SEC had missed the deadline, initially thought to be October 16; however, the SEC’s appeal against a favorable ruling for Ripple was officially recorded on October 4, allowing them to file Form-C by the new deadline.

Ripple will then have seven days to submit its own Form-C for a cross-appeal, potentially extending the case timeline into mid-2025.

The case docket reveals that the SEC filed its notice of appeal on October 2, 2024. This filing date plays a critical role in calculating the deadline for the submission of Form-C. Legal analysts, like Jeremy Hogan, have been questioning whether Form-C was due by October 17 or if the SEC could have until October 18 due to the timing of the docket entry.

Hogan expressed his confusion on social media, indicating that he could not find any logical error in assuming Form-C was due by October 17. His concern highlights the high stakes involved, as the SEC’s appeal could face dismissal if the form was not submitted on time.

I’m trying to figure out how we got the timeframe wrong but…I can’t see any flaw in the logic. The C was due today and…it’s not showing up on the docket. If it wasn’ filed, the appeal “will” be dismissed (is what it says). Those are the facts as we know ’em. I’m hesitant… pic.twitter.com/jHVWZ3mNF4
— Jeremy Hogan (@attorneyjeremy1) October 17, 2024

Delays and Deadlines in the Ripple vs. SEC case

Eleanor Terrette, a reporter closely following the case, noted the nuances of the appeal process, pointing out that the SEC’s notice of appeal was filed on October 2, 2024, but was not officially entered into the system until October 4, 2024. This has led to questions about whether the SEC could argue for a later deadline. As of now, the deadline interpretation seems to be Friday, October 18, 2024 by 11:59 PM.

The delay in the official docketing has added a layer of confusion and complexity, leaving both legal experts and the involved parties on edge. The lack of a clearer answer has fueled speculation over the SEC’s next move and whether their appeal could still be saved.

Potential Dismissal on the Horizon?

If the SEC fails to meet the Form-C filing deadline, it risks having its appeal deadline, it risks having its appeal against Ripple dismissed which would be a significant legal setback for the agency. The possibility of such a dismissal has generated intense interest from the community who are eager to see how this case develops.

Since the new date for the deadline has been decided to be October 18, there has been no Form-C filing from the SEC.

Leeway for Federal Agencies?

Interestingly, Fred Rispoli has also mentioned that the courts provide a lot of leeway to federal agencies. Giving an excuse for them to extend the deadlines.

“Appellate courts give A LOT of leeway to federal agencies. Even a lame excuse from the government is likely enough to allow the Court to let it slide.”- Fred Rispoli on his X Post

In contrast, Ripple Labs and its legal representatives have been actively filing notices of appearance, reflecting their readiness to respond to the SEC’s appeal. The filings from Ripple’s end, all submitted promptly, suggest that they are preparing for whatever legal arguments may come next as Ripple does not want to risk anything from its end.

As the deadline approaches, the legal community awaits clarity on whether the SEC’s Form-C was timely submitted or if their appeal might face a premature end. Regardless of the outcome, this episode indicates the complexities of appellate procedures and the critical importance of meeting filing deadlines in high-stakes cases.