SEC vs. Ripple litigation is likely to cause delays
In December 2020, the Securities and Exchange Commission (SEC) and the fintech company, Ripple, launched a long-running dispute.
As a result, the lawsuit has been plagued by accusations of continual delays, and the case has yet to reach a resolution. The SEC has often tried to stall the process. It’s no different this time around, with rumours of further delays.
Regardless of what happens, one thing is for sure: XRP investors have already suffered in the past and will do so again if the current hold-up continues.
It’s hardly unexpected that the SEC has requested an extension multiple times. SEC requested an extension of time to oppose Magistrate Judge Netburn’s order on the move for “reconsideration of the DPP ruling” on April 15th.
Both sides seem to be on the same page about this new delay in the schedule. This move was met with a lack of support from the XRP community as a whole.
The SEC, Ripple, and Individual Defendants Chris Larsen and Brad Garlinghouse have all agreed, according to a newly filed letter publicised by attorney James K. Filan, that any moves for summary judgement and to exclude expert evidence must be submitted on or before August 2, 2022. Expert challenges are expected to begin in August, and closing papers are expected to be submitted by December 20, 2022.
Since Anthony M. Bracco’s expert report included suggestions for possible remedies, this newly filed Joint Scheduling Order would not apply to requests to contest Bracco’s evidence.
There were some unexpected comments on crypto Twitter as a result of this delay. James Filan elaborated on his story in a subsequent tweet. Filan opined that the agreed-upon timetable was mostly a compromise. Filan went on to explain why Ripple would have agreed.
Ripple’s General Counsel Stuart Alderoty tweeted on April 23 that the Securities and Exchange Commission (SEC) encourages such delays. “Thank you to everyone who has been following the case so far,” Alderoty said. Keep in mind that despite the SEC’s best efforts to prolong the case, Ripple (and the Court) are working hard to get a resolution as quickly as possible.
More anguish will be inflicted on XRP investors when the resolution is implemented in 2023. This lawsuit has caused about $15 billion in XRP market capital to be lost, which is direct harm to those who the SEC professes to safeguard.
Law firm partner Jeremy Hogan voiced his concern with the scheduling ruling when he linked Ripple’s case to that of the Texas-based corporation LBRY. The Securities and Exchange Commission has accused both Ripple and LBRY of violating its rules.
Whatever the situation may be, XRP has been harmed indefinitely as a result of the ongoing litigation. The price of XRP fell by 3% as it hovered around the $0.71 level.