Why the discovery deadline in the SEC v. Ripple case will be delayed further?
XRP fans are turning their heads in anticipation that the battle between the US Securities and Exchange Commission (SEC) and fintech startup Ripple is finally coming to an end. However, news that deadlines for expert discovery – including the dismantling of several expert witnesses – will be postponed could affect their morale.
The SEC and fintech startup Ripple case is finally coming to an end?
The update was first shared by Eleanor Terrett of Fox Business in a tweet on January 11. According to the journalist, the deadline for expert discovery in the SEC esoteric case v. Ripple will be delayed by a month due to the rapid spread of the coronavirus variant Omicron.
A source close to the lawsuit told Fox Business that a letter outlining the new motion will be filed in court as early as today. Presiding Judge Sarah Netburn had previously asked the SEC and Ripple to extend the expert’s discovery deadline to January 14. Although the latest report talks about the deadline being pushed back a month, the specific date has not yet been released.
The SEC in December 2020 hit the creator of the world’s eighth-largest cryptocurrency by market cap with a $1.3 billion grueling lawsuit. The agency alleges that Ripple knowingly sold its XRP cross-border remittance token as an unregistered security.
The lawsuit not only surprised Ripple and its supporters but also added uncertainty to an already complicated regulatory discussion about whether cryptocurrencies like XRP should be classified as stock, currency, commodity, or something else.
That’s not all. The incident affected Ripple’s partnership as well as the XRP market. Case in point, multiple crypto exchanges, and trading platforms delisted XRP following the lawsuit.
However, Ripple decided to go hard against the US regulator. One of the primary defenses used by the payments company since the lawsuit was initiated is the fair notice affirmative defense.
Ripple asserts that the plaintiff did not provide sufficient notice that the sale of the XRP cryptocurrency violated securities laws. The SEC and Ripple have won several court victories as they continue to counter each other’s claims meticulously. With the expert discovery window extension, the case may take longer than initially anticipated.
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