As AZCoin News reported, the U.S. Securities and Exchange Commission (SEC) won a minor procedural victory against Ripple, as Judge Sarah Netburn approved the agency’s request for a time extension in a Text-Only Order, despite Ripple’s opposition.
#XRPCommunity #SECGov v. #Ripple #XRP The SEC has filed a motion for permission to redact notes of meetings between the SEC and third parties claiming the notes are protected by DPP. The request is based on the January 13, 2022 decision on the DPP issues.https://t.co/2VkTYqgc4q
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) March 23, 2022
The latest update in the XRP lawsuit is bad news for Ripple and XRP holders
The lawsuit alleges that Ripple raised more than $1.3 billion by selling XRP in an unregistered securities offering. The blockchain company vehemently denies the regulator’s accusations and wants it to be over as quickly as possible.
But with the latest court ruling, the case will likely take a little longer. As pointed out by defense lawyer and former federal prosecutor James K. Filan, the individual defendants in the case, chief executive Brad Garlinghouse and executive chairman Chris Larsen, are now expected to file their Answer by April 8, 2022. The SEC will then inform the court on whether additional discovery is necessary a week later, on April 15th, while the joint proposed scheduling order is due April 22, 2022.
However, Filan indicates that these dates can change depending on how fast Ripple files its answers to the complaints of the SEC.
“The filing of the Individual Defendants’ Answer is the triggering event. When the Answer is filed, even before April 8th, the date the Answer is filed starts the two-week clock running for the filing of the SEC position on discovery and the Joint Proposed Scheduling Order,” Filan explained.
The SEC filed a petition on March 21 to determine if further discovery is needed. The defendants individually objected to the SEC’s request for an extension, arguing that the securities watchdog had slowed down the case “long enough.”
The SEC has been accused of using tactics to delay the case and further frustrate Ripple. Some observers argue that the agency is deliberately delaying the battle with Ripple because it wants to get through the case with blockchain publishing company LBRY. They hope to get a favorable verdict, so they can be used as backing in the closely watched legal scuffle with Ripple.
Ripple remains unfazed despite the SEC repeatedly putting its foot in this case. Ripple CEO Brad Garlinghouse recently said he is optimistic about the lawsuit’s outcome after a federal judge rejected the SEC’s recommendation to protect Ripple’s key fair notice.
Other XRP enthusiasts believe that a one-week extension shouldn’t be big. And that means the SEC will have no more excuses for timelines and delays than once the schedule is confirmed. Furthermore, the regulator would have no place to claim that it was in a hurry to begin issuing a summary judgment.
XRP price has increased by 2% in the past 24 hours to trade at $0.835. It is currently the sixth-largest cryptocurrency on the market.
Ripple’s recent strides
Ripplenet has improved its offering in South East Asia through the XRPL based remittance technology that it christened RippleNet. The offering allows banks to settle transactions in real-time and is gathering steam despite the dark cloud that surrounds the platform.
A growing number of banks have struck the chords of partnerships with Ripple to build their payment networks using the XRP Ledger. Fast transfers and cheaper transaction costs are part of the reasons for the switch to these financial institutions.
Reports from Twitter suggest that Wells Fargo is building an alternative for SWIFT with an online service agreement being circulated online. The agreement indicated that Wells Fargo would use Real-Time Payments by the Clearing House, which is a Ripple partner.
Read more:
- SEC Has Been Granted An Extension To Submit A Discovery Schedule Relating To Ripple CEO Brad Garlinghouse
- XRP Ranks Among The Most Used Smart Contracts By The 1,000 Biggest BSC Whales Over The Last 24 Hours