SEC Appeals Deadline Confusion Explained.
The popular Ashley Prosper in Ripple vs. The XRP community went into a frenzy as the SEC broke down the confusion surrounding the appeal deadline. There are three key documents in circulation, each leading to different interpretations of SEC Form C filings.
First the SEC created the confusion of appeal or no appeal now it seems the deadline is gone and the situation is now dire. Let's understand the key documents to know the exact situation.
Document fragmentation and confusion
Prosper explains the situation by discussing three different documents.
Document 1 refers to the Acknowledgment and Appearance Form, which is dated October 18th but is unrelated to Form C. Document 2 lists the document submissions for the appeal at the 2nd hearing. Prosper points out that relying on the document date would be misleading because technical delays could unreasonably extend the timeline. Document 3 of the District Court document is the most critical. This shows that the notice of appeal was filed on October 2nd, which means that the deadline for submission of Form C was October 16th.
Based on Prosper's district court filing date, the SEC missed the deadline.
Did the SEC really miss a deadline?
In a follow-up post, Prosper reiterated that the 14-day countdown began on October 2nd, making October 16th the final date. The SEC's failure to meet this deadline has raised questions in the community. While some, like XRPizzazz, argue that this procedural error does not lead to automatic expulsion, they acknowledge consequences such as warnings or fines.
However, former SEC attorney Mark Fagel said the 14-day filing deadline may not be strict, and the court may extend it. The SEC has assured the public that although it has postponed the deadline, it does not mean that it is abandoning the appeal. The SEC's notice of appeal, filed Oct. 2, aims to challenge the ruling, which includes $125 million in penalties. The case was added to the second criminal court docket on October 4, so the SEC still has time to file the necessary forms for the appeal.
Prosper added that if the SEC wanted more time, they should have filed for an extension. Absent an actual technical problem, a missed deadline could result in a significant procedural error for the SEC.
Or there is a catch!
Fox Business reporter Eleanor Terrett said in an X post that Ripple's General Counsel and other lawyers said the SEC filing deadline was initially believed to be October 16.
Having said that, according to his lawyer Jeremy Hogan and Terret, the appeal was not filed until October 4, so the actual deadline is October 18 at 11:59. This 14-day appeal deadline corresponds to the statutory procedure. It starts from the date of registration, not the date of registration.
So many views and no concrete answer at sea so we'll have to wait and see what comes next! Stay with us.
