U.S. Regulation

SEC Removes Ripple Lawsuit From its Website as Case Moves to Appeals Court

The SEC has removed Ripple-related civil actions from its website as the lawsuit advances to the Court of Appeals for the Second Circuit, marking a critical stage in the ongoing legal battle over XRP’s classification.  A user on X noted that “the SEC website does not matter” and emphasized that the appeal remains active in the Court’s nationwide PACER system. 

Identifying as an attorney, the user stated, “I logged in, and the last entry is Ripple’s request for a time extension to file its brief. The case status is still listed as ‘Active,’ though that may change soon.” As of January 23, 2025, Ripple has formally requested a due date of April 16, 2025, to file its response brief, according to a filing by Ripple’s legal team.  This follows the SEC’s January 15, 2025, opening brief, in which the agency sought to overturn key aspects of the prior ruling, particularly regarding XRP sales to retail investors.

The district court previously ruled that while XRP itself is not a security, Ripple’s direct sales to institutional investors constituted securities transactions.  The court determined that sales through secondary trading platforms did not qualify as securities. The SEC now contends that retail investors would have expected profits based on Ripple’s promotional efforts.

“Doing the same thing over and over and expecting different results,” said Ripple CEO Brad Garlinghouse about the appeal. Stuart Alderoty, Ripple’s Chief Legal Officer, characterized it as a “rehash of already failed arguments.” The original $125 million civil penalty against Ripple remains in effect, considerably less than the SEC’s initial $1 billion demand.  The case’s outcome at the appellate level is expected to shape the regulatory framework for digital assets and their classification in the US.

Terron Gold

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