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Ripple vs SEC Legal Battle Could Extend to 2027—Here’s Why

Ripple vs SEC Legal Battle Could Extend to 2027—Here’s Why

DailyCoinDailyCoin2024/10/03 14:57
By:DailyCoin
  • The SEC has reignited its battle with Ripple despite only a partial defeat.
  • Ripple has seen its celebration falter as the legal fight has intensified.
  • Legal timelines have stretched, suggesting conflict may continue until 2027.

The U.S. Securities and Exchange Commission (SEC) isn’t done with Ripple Labs yet. After a partial loss in its 2020 lawsuit over XRP sales, the SEC has officially appealed the ruling, and this legal battle could now stretch into 2027—a timeline few expected when Judge Analisa Torres handed down her decision in July 2023.

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In December 2020, the SEC sued Ripple Labs, claiming XRP was an unregistered security. Judge Torres’ 2023 ruling gave both sides partial victories—Ripple’s institutional sales were deemed securities, but its programmatic sales on exchanges were not. While Ripple celebrated, the SEC refused to back down.

Key Dates to Watch in the Ripple vs SEC Lawsuit

Now, the SEC is taking the case to the Second Circuit Court of Appeals, seeking to overturn parts of the decision that Ripple sees as critical wins for the entire cryptocurrency industry. The appeals process is expected to be a long haul:

  • January 2025: The SEC’s opening brief is due (after a likely 30-day extension).
  • March 2025: Ripple files its cross-appeal.
  • September – October 2025: Oral arguments.
  • Early 2026: A ruling could arrive by March or April 2026—but that’s only if the case ends here.

As the timeline unfolds, questions arise about the potential for this case to escalate further, particularly regarding its implications for the cryptocurrency sector at large.

Ripple vs SEC Case To Hit the Supreme Court?

If either side loses at the appellate level, expect another round—this time at the U.S. Supreme Court, which could add 1.5 to 2 more years. That means a final ruling might not come until late 2027. Complex cases like this one often drag out for several reasons . 

First, the appeals process is inherently slow, involving multiple steps such as briefs, extensions, oral arguments, and ultimately, a ruling, all of which take considerable time. Additionally, the regulatory stakes are high; this case could set a precedent for regulating digital assets like XRP, prompting the courts to proceed with extra caution.

On the Flipside

  • Prolonged litigation may deter institutional investors from engaging with XRP due to unresolved regulatory clarity.
  • A Supreme Court ruling could create broad crypto regulations hindering or benefiting industry innovation.
  • Ripple’s global partnerships could suffer from prolonged U.S. legal uncertainty, weakening its international presence.

Why This Matters

The SEC’s legal battle with Ripple Labs could set a major precedent for whether digital assets are deemed securities, impacting the entire crypto market. As the case drags through appeals, its outcome may shape future regulations and influence investor confidence across the industry.

To learn more about the SEC’s perspective on their appeal against Ripple, read here:
SEC’s Appeal Against Ripple: Why They Think They Can Win

To understand Ripple’s view on why the SEC’s appeal is flawed, read here:
Why Ripple Thinks the SEC Appeal is a Misstep and Won’t Succeed

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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