Does the New Cross-Appeal Mean a 3-Year Extension of the SEC Lawsuit?

Just before the deadline, blockchain company Ripple submitted Form C for its cross-appeal in the ongoing XRP lawsuit against the U.S. Securities and Exchange Commission (SEC). 

Attorney Bill Morgan expressed frustration over the SEC’s actions, suggesting that their appeal could be more about delaying the process than about confidence in their case. He said that Judge Torres’ recent decision has been positively received, which raises questions about why the SEC isn’t moving more quickly to reverse it.

The SEC filed its notice of appeal just before the 60-day deadline after Judge Torres’ final judgment on August 7. They also submitted their Form C late, leading to debates about whether it was a day overdue. Now, the SEC is asking for the full three months to file its brief, which would mean five months after the final judgment. This raises further questions: Is the delay intentional, or does the SEC lack confidence in their arguments?

However, Former SEC lawyer Marc Fagel suggested that the agency might be taking as much time as possible, which is typical for litigators, especially in government where there are many layers of review for briefs.

In response, a user pointed out that this could explain why it took the SEC 14.7 days to file Form C. He argued that the delays seem designed to create uncertainty and doubt in the market, which could discourage people from investing in crypto.

Fagel acknowledged that while he doesn’t know the SEC’s exact motivations, he said that the agency is enforcing the law. He added that if Congress truly wants to create a clearer path for cryptocurrency, they need to take action quickly.

A frustrated user expressed concern that it seems everyone has to simply accept that the lawsuit has been extended for another three years. Marc replied, “I don’t know about 3 years. But parties to federal litigation have a right of appeal, and if the SEC believes a court has made bad law that could impact investors, it’s their job to pursue it.”