Updates in the Second Circuit appeal proceedings reveal the latest legal developments in the SEC vs. Ripple case. Emerging strategies suggest that the ongoing courtroom battle between the US Securities and Exchange Commission (SEC) and Ripple Labs has taken a new turn.

Despite launching his Senate race against Elizabeth Warren, pro-XRP advocate John Deaton has pledged to remain steadfast in representing XRP holders’ interests in the SEC versus Ripple case.

Ripple’s Cross-Appeal Filing Adds Pressure on SEC

Attorney James Filan reported that Ripple’s legal team filed a cross-appeal in response to the SEC’s ongoing litigation. Ripple’s filing, appearing on the Second Circuit docket, presents a strong defense strategy. It argues that the SEC’s classification of XRP as an unregistered security is legally flawed.

The company’s cross-appeal also emphasizes Ripple’s contention that XRP is not an investment contract. It pushes that XRP should not be regulated as a security, an argument grounded in legal precedent and market realities.

Jeremy Hogan, a prominent attorney, has provided ongoing analysis of the case. He highlighted key elements of Ripple’s arguments, detailing discrepancies in the SEC’s approach toward cryptocurrencies.

Hogan also noted that Ripple’s filing could shape a landmark decision in the crypto industry. This is more so if Ripple’s arguments influence the court’s interpretation of what constitutes security under US law.

Read More: Crypto Regulation: What Are the Benefits and Drawbacks?

This development comes after the US regulator appealed the Ripple (XRP) case. As BeInCrypto reported, the SEC seeks a “de novo” review after Judge Analisa Torres’ July 13, 2023, ruling. The judge had ruled in partial favor of Ripple’s token as non-security.

Adding to the legal tension, the SEC has requested an extension to file its “Principal Brief” in the case until January 15, 2025. If granted, this extension would provide the SEC with additional time to solidify its arguments against Ripple’s cross-appeal.

The extended timeline could allow the SEC to refine its stance and address criticisms that its approach to crypto regulation lacks consistency. The agency faces scrutiny for its perceived ambiguity around classifying digital assets.

The SEC’s requested extension comes as the agency grapples with multiple cases related to cryptocurrency and digital assets. This reflects the growing challenge of regulating a fast-paced sector without comprehensive legislative guidance.

With the SEC’s briefing extension request pending and Ripple’s cross-appeal now under review, the court’s eventual decision could have far-reaching consequences. It could potentially reshape the future of digital assets in the United States.

John Deaton’s Continued Role as XRP Advocate Despite Senate Race

Amid the high-stakes legal maneuvers, John Deaton, a vocal XRP advocate, has confirmed his ongoing involvement in the case. This is despite his recent decision to run for the US Senate.

“Senate race or not, I don’t walk away from what I started,” Fox Business correspondent Eleanor Terret reported, citing Deaton.

Notably, Deaton has acted as an “amicus” (friend of the court) for XRP holders. His comment highlights his dedication to representing their interests. Deaton is also committed to defending the right to participate in a fair and transparent cryptocurrency market.

This commitment, alongside his Senate aspirations, illustrates the broader political dimension of the SEC vs. Ripple legal battle. With his Senate run focused on issues including financial and cryptocurrency regulation, Deaton’s involvement in the Ripple case aligns with his campaign message advocating for clear and reasonable crypto policies.

He has previously criticized the SEC’s approach to the case, describing it as overly aggressive and detrimental to innovation within the US crypto industry. However, the outcome of this case holds significant implications for Ripple, XRP holders, and the entire crypto industry.

A ruling in favor of Ripple could set a precedent that influences how other cryptocurrencies are regulated in the United States. This could curb the SEC’s authority to classify tokens as securities without clearer legislative guidance. Ripple CEO Brad Garlinghouse is optimistic about a victory.

“I am so confident that we’re going to win the appeal and that would put a dagger in Gary Gensler’s whole agenda around crypto regulation…I’m not losing any sleep over it at all. I’m so confident about it because I believe we’re on the right side of the law. I think we’re on the right side of history,” Garlinghouse reportedly told Terrett.

Read more: Everything You Need To Know About Ripple vs. SEC.

Conversely, a ruling supporting the SEC’s claims could empower the agency to take similar actions against other crypto firms. This could shape the regulatory framework governing digital assets in the US. On this account, Hogan takes a more stance.

“Sometimes win vs. lose in these cases is not a clear line. Nevertheless, yes, I think there is an 80% chance Ripple comes away from the appeal in a better position than now,” Hogan expressed.

Amidst these developments, BeInCrypto data shows that the XRP price has fallen 0.84% in the past 24 hours, trading for $0.5239 as of this writing.

Microsoft’s upcoming shareholder meeting on December 10 is shaping up to be a closely watched event. The tech giant’s board of directors (BOD) and shareholders are facing a proposal for the company to invest in Bitcoin.

According to a Securities and Exchange Commission (SEC) filing released late Thursday, the “Assessment of Investing in Bitcoin” has been proposed as an official voting item. This has sparked anticipation in both tech and financial circles, including crypto.

Why Microsoft May Start Investing In Bitcoin

The proposal, filed with the US SEC, has already met with resistance from Microsoft’s board. The board clarified its recommendation against the proposal, arguing that it is “unnecessary.”

They also reasoned that the company’s management already gives due consideration to a wide range of investment assets. Noteworthy, in the past, this has also included Bitcoin.

Microsoft’s Global Treasury and Investment Services team routinely evaluates options with an eye toward diversification. Additional considerations also include inflation protection and risk management.

The board maintained that management has the expertise to decide on assets that would benefit Microsoft’s operational stability. This is without the need for a shareholder-mandated directive on Bitcoin.

Read More: How To Buy Bitcoin (BTC) and Everything You Need To Know

Bitcoin has sparked debate among institutions in recent years, with some seeing it as a hedge against inflation and a potential diversification tool. Meanwhile, others view it as too volatile for corporate balance sheets.

The proposal to consider Bitcoin comes at a time when some major institutional investors, like BlackRock, have made substantial moves into cryptocurrency markets. BlackRock, which is Microsoft’s second-largest shareholder with a 5.7% stake, recently made headlines for its $680 million purchase of Bitcoin via its iShares Bitcoin ETF (exchange-traded fund).

Against this backdrop, there is speculation about whether BlackRock’s investment decisions could influence Microsoft’s shareholder vote on Bitcoin. Microsoft’s shareholder list includes several prominent institutional investors. The largest, Vanguard, holds a 9.1% stake, followed by BlackRock, State Street, Fidelity, and former CEO Steve Ballmer.

“Guess who Microsoft’s second-largest shareholder is? Guess who made the Bitcoin ETFs happen?” Terrence Michael, author of the Bitcoin book Proof of Money, quipped.

The varied interests among these key stakeholders could make the upcoming vote a critical gauge of institutional sentiment toward Bitcoin adoption by established tech companies.

For now, however, BlackRock’s pro-Bitcoin stance signals a potential swing in favor of the proposal among some shareholders. The possibility stands despite the board’s recommendation against it.

BlackRock CEO Larry Fink has recently expressed a positive outlook on Bitcoin, calling it an independent asset. This suggests that the firm might advocate for Microsoft’s involvement in the cryptocurrency space.

However, it remains uncertain if BlackRock would go as far as to support the proposal openly. Analysts are watching the situation closely. The general sentiment is that a shareholder vote in favor of exploring Bitcoin investments could set a significant precedent, and other tech giants may follow suit.

 “…the board must consider the proposal, confer with advisors, record discussions in the minutes of the board, and face pressure and questions from shareholders and press on BTC as a reserve asset,” said Jesse, a business lawyer serving companies, entrepreneurs, and investors.

Read more: Who Owns the Most Bitcoin in 2024?

Nevertheless, if the proposal gains traction, it could embolden similar actions within other corporations, opening the door to further institutional adoption of digital assets.