January 15 Deadline Set for SEC’s Ripple Appeal Brief Filing

TLDR

• Attorney John Deaton predicts Ripple may launch IPO by late 2025/early 2026, pending confirmation of Paul Atkins as SEC Chairman
• SEC must file appeal brief by January 15, but Deaton believes SEC will withdraw its appeal
• Judge Torres’ ruling was narrow, only addressing XRP secondary market sales under Howey Test
• If SEC pursues Supreme Court case, they risk setting unfavorable crypto precedent
• XRP price could potentially reach new heights if SEC withdraws the case, with some analysts projecting $19

The ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC) is approaching a crucial deadline, with the SEC required to file its appeal brief by January 15. The case, which has drawn widespread attention in the cryptocurrency industry, may be heading toward resolution according to recent predictions from prominent cryptocurrency attorney John E. Deaton.

The SEC’s current position stems from Judge Torres’ ruling that XRP sales in the secondary market did not qualify as securities under the Howey Test. This decision marked a partial victory for Ripple but left several questions unanswered about the broader implications for cryptocurrency regulation.

Deaton, who has closely followed the case, suggests that the SEC’s appeal faces substantial hurdles. The attorney points out that Judge Torres’ ruling was specifically limited to Ripple’s case and doesn’t create a binding precedent for other cryptocurrency cases. This narrow scope makes the appeal less attractive for the SEC from a strategic standpoint.

“@Ripple didn’t prioritize going public because that really didn’t make any sense under the previous SEC administration, maybe that changes in the future.”
—- @bgarlinghouse

I’ve already stated that I believe we see a Ripple IPO either in the last quarter of 2025 or the 1st… https://t.co/mEHkIqpkCb

— John E Deaton (@JohnEDeaton1) January 6, 2025

Legal experts have noted that even if the SEC succeeds in its appeal, the case would likely return to Judge Torres. She could then rule against the SEC using different aspects of the Howey Test, potentially reaching the same conclusion through alternate legal reasoning.

The timing of these developments coincides with potential changes in SEC leadership. The confirmation of Paul Atkins as SEC Chairman could reshape the agency’s approach to cryptocurrency regulation. Deaton believes this leadership change might lead the SEC to withdraw its appeal entirely.

Looking ahead, Deaton projects that Ripple could launch an Initial Public Offering (IPO) by late 2025 or early 2026. This timeline depends heavily on how quickly the appeal process concludes and whether Paul Atkins receives confirmation as SEC Chairman.

The case has attracted attention from other judges in the district. Judge Rakoff has expressed criticism of Torres’ ruling, highlighting the complex legal landscape surrounding cryptocurrency regulation. These varying judicial interpretations underscore the challenges in establishing clear legal frameworks for digital assets.

Financial analysts watching the case have noted potential impacts on XRP’s market value. The cryptocurrency previously reached an all-time high of $3 in 2021. Some market observers suggest that a favorable resolution of the SEC case could drive the price higher, with some projections reaching $19.

XRP Price on CoinGecko

The SEC’s appeal strategy carries risks beyond the immediate case. If the matter reaches the Supreme Court, the SEC could face a ruling that sets broader precedents for cryptocurrency regulation. Deaton suggests this risk might encourage the SEC to seek a settlement instead of pursuing a full appeal.

Ripple’s potential IPO would represent a major step for both the company and the cryptocurrency industry. Going public would provide Ripple with additional capital and enhance its institutional credibility. It would also demonstrate how regulatory clarity can enable growth in the cryptocurrency sector.

The resolution of this case could affect how other cryptocurrency companies operate in the United States. Judge Torres’ ruling specifically addressed XRP sales in the secondary market, leaving other aspects of cryptocurrency trading and sales open to interpretation.

Market participants are watching closely for the SEC’s next moves. The January 15 deadline for the appeal brief will provide insight into the agency’s strategy and determination to pursue the case further.

The possibility of the SEC withdrawing its appeal has sparked discussion about potential settlement terms. Deaton suggests that Ripple might agree to pay a fine to resolve the matter, allowing both parties to avoid prolonged litigation.

Legal observers note that the SEC’s appeal faces procedural challenges. The specific nature of Judge Torres’ ruling makes it difficult for the SEC to argue for broader application of securities laws to cryptocurrency trading.

The case timeline now depends on several factors, including the SEC’s filing of its appeal brief, potential settlement negotiations, and the confirmation process for new SEC leadership.

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