Ripple Labs Inc. (XRP) is facing a critical procedural issue in its ongoing legal battle with the Securities and Exchange Commission (SEC). The U.S. Court of Appeals for the Second Circuit issued a Default Notice on October 22,2024, alerting Ripple’s legal team that they missed the deadline to file the required Acknowledgement and Notice of Appearance by October 18 2024.
Filed today: pic.twitter.com/IJwJhfdd9h
— Sherrie 🌸 (@CherryEmpress21) October 22, 2024
Ripple’s attorney now have 14 days from the notice date to submit the form, or else they will need special court permission to argue their case during the appeal. This comes as the SEC continues its fight, alleging that Ripple’s sale of XRP tokens constitutes an unregistered securities offering.
Legal Experts’ Comment: A Small Mistake but Costly Mistake
Attorney Fred Rispoli weighed in on XRP’s filing delay, stating “This time Ripple failed to file a form on time. Not a big deal but also not the kind of thing you are thrilled to see when you are paying a collective $8,000 per hour from your legal team.” Rispoli’s comment reflects the frustration felt by XRP’s supporters over an avoidable error, especially when significant legal fees are on the line.
High Stakes for Ripple
While the filing delay may seem minor, it could complicate XRP’s ability to defend itself in the appeal process. Missing the court deadline could result in XRP’s legal team needing special permission to present oral arguments, potentially weakening their defense.
Ripple, already entangled in its high-profile legal battle with the SEC, will need to act swiftly to resolve this procedural issue and continue fighting the SEC’s claims regarding the nature of XRP as a security.
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