The XRP lawsuit is now elongated, with the appeal and cross-appeal from the US SEC and Ripple Labs, respectively. Earlier today, the US Appeals Court for the Second Circuit notified Ripple about a possible procedural default. This filing served as a warning to the blockchain payments firm not to exclude its attorneys in future Oral Arguments.
XRP Lawsuit: Defaults and Second Chances
The XRP lawsuit is fast-paced and over the past month, there has been two unique instances of filing defaults. First the community thought the US SEC defaulted in filing Form C that would cement its appeal against Judge Analisa Torres’ Ripple lawsuit judgment.
The markets regulator eventually submitted the Form C statement last Thursday. Now, the table has turned with Ripple now in the spotlight over a default. Per the Second Circuit’s notice, Ripple is yet to file its Counsel Acknowledgment and Notice of Appearance. This document, per the Court was due on October 18.
Unlike the US SEC that did not miss the Form C filing deadline, the Court is giving Ripple Labs a 14-day grace. If it fails to file the required document in the XRP lawsuit, its attorneys might not get the chance to make oral arguments in the appeals case.
In this document, the court is saying that Ripple Labs (the defending side, also called the “appellee”) hasn’t sent in their form yet, even though they were supposed to send it by October 18. The court is giving them 14 more days to get it done. If they still don’t, they might…
— xrp & your mom (@xrp187) October 22, 2024
Next Steps For Ripple Labs
Ripple Labs has not breached any court’s due process known to the community yet, and unlikely to start now. When the US SEC filed the Form C statement last week, Ripple CLO Stuart Alderoty infiormed the community the firm will file its response this week.
The firm has its goals in the XRP lawsuit well defined. The company’s executives noted that the cross-appeal filed will help to put a final end to the SEC’s enforcement tactics. It is worth noting that the regulator has placed crypto assets in its list of exam priorities for 2025.
This case might help change the narrative in relation to enforcement to an extent, hence its importance.
The post XRP Lawsuit: Why Ripple Labs Need To Take a Drastic Move Now appeared first on CoinGape.