Nervous restlessness – The US SEC is in bad shape in its lawsuit against Ripple (XRP). She could indeed lose this standoff that has lasted for more than a year, for non-compliance with its fair notice obligations. However, the agency has not given up on titillating its opponent. She has just won a minor victory which however has something to annoy the party opposite.
US SEC vs. Ripple: Better to lose tomorrow than today
Judge Sarah Netburn approved the SEC’s motion filed on March 21, 2022, a request for on an extension of time to submit a discovery schedule. This period of time will theoretically allow the Commission to determine whether or not it is necessary to do further research as to the dispute between it and Ripple.
Individual defendants who are the CEO of Ripple Labs, Brad Garlinghouse, and the co-founder of the company, Chris Larsen, are denouncing a legal maneuver which would aim to deliberately slow down the process of resolving this conflict.
They expressed their opposition in a letter sent to the court. Individual defendants are due to file their response to the SEC’s complaint on April 8, 2022. Within a week of filing, the agency is required to advise the judge of its position on whether or not to conduct further research. :
“The SEC will advise the Court of its position on the need for further discovery within a week of the individual defendants filing”
Verbatim court order read by defense attorney, James Filan
The SEC is therefore dragging its feet and frustrating individual defendants. The latter could also respond to this provocation from the SEC, upsetting the agency’s agenda, by filing their response before this deadline of April 8, 2022. This filing before the deadline would then oblige the Commission, according to James Filan’s interpretation of the order, also bring forward the filing date of its position :
“The filing of the individual defendants’ response is the triggering event. When the response is filed, even if it is before April 8, the response filing date starts the two-week clock for filing the SEC’s position on the discovery and the joint order proposal. calendar”.
The legal battle against Ripple and the SEC has seen many backlashes from both sides. Crypto projects that want to strengthen their defense system to protect themselves from possible lawsuits from regulators, can take inspiration from Ripple’s legal maneuvers to knock its opponent out.
The SEC lawsuit against Ripple is a bit like those endless telenovelas. Suspense and unexpected twists for so many episodes. If you prefer more direct programs, register now on the FTX reference crypto exchange platform and benefit from a lifetime discount on your trading fees (affiliate link, see conditions on official website).