Former SEC lawyer clarifies that the latest Ripple case filing has nothing to do with the alleged SEC late filing

Former securities attorney and SEC official Marc Fagel provides insight into the latest filings in the Ripple lawsuit.

Shockingly, the United States Court of Appeals for the Second Circuit filed a “Notice of Admission and Default” in the SEC’s lawsuit against Ripple.

Sherrie, a well-known XRP community figure, shared the document on X yesterday.

The Second Circuit’s notice sparked speculation in the XRP community.

According to the filing, the Second Circuit highlighted that the appellee’s attorneys failed to file a notice to appear by the court’s Oct. 18 deadline.

The court warned that if a notice to appear is not filed within 14 days of the notice being given, the appellee’s legal representative may not be able to present oral argument unless special leave is obtained.

Since the Second Circuit filed its notice, some XRP supporters have speculated that the notice was directed at the SEC. They suggested that if the regulator fails to comply with the order, the Second Circuit may dismiss its appeal.

Notice involves Ripple co-founder

As speculation grew, Fager provided clarification on the filing, stressing that it did not involve the SEC. According to him, the filing is directed against Ripple co-founder and chairman Chris Larsen, who is listed as one of the respondents in the case.

Fagel said Larsen’s legal representatives have not yet filed a notice to appear in the case. The Second Circuit therefore issued a 14-day extension for them to comply.

However, if his legal representatives fail to file their notice to appear by November 5, they risk being barred from presenting oral arguments.

Ripple to file Form C this week

Meanwhile, the broader crypto community is looking forward to Ripple’s Form C filing. Recall that the crypto payments company filed a notice of interlocutory appeal on Oct. 10, indicating that it also plans to challenge the district court’s ruling on its institutional sales of XRP, which were deemed investment contracts.

Shortly after the SEC filed its Form C last week, Ripple’s chief legal officer Stuart Alderoty revealed that the company would file its advance brief this week. It is worth noting that the deadline for this document is Friday, October 25, 2024.

Notably, Ripple is expected to present advance arguments on why it believes Judge Analisa Torres erred in the institutional sales decision. Afterwards, the parties will agree on when to file their respective appeal briefs.

According to Odroti, the Second Circuit may give the SEC 90 days to file its discovery brief. Ripple’s chief legal officer speculated that the summary process could be concluded by July 2025.

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