SEC Gains Small Victory With Date Extension, What’s Next?

The US Securities and Exchange Commission (SEC) has achieved a minor victory with the approval for extension of time in the Ripple case.

On March 21, 2022, the SEC had filed a request for an extension of time in Ripple’s case at the court in order to conduct additional discovery. However, Ripple CEO Brad Garlinghouse & co-founder Chris Larsen had opposed SEC’s request for time extension arguing that there is no need for additional discovery

This legal dispute between Ripple & SEC has been going on since December 2020. The dispute started after the SEC claimed that Ripple Labs generated $1.3 billion from unregistered security offerings via XRP token. The Ripple Lab denies accepting XRP as security and says it’s just a method for international payments.

However, the court granting the deadline extension request by SEC marks a small win. A few of the witnesses are of the opinion that the SEC is just trying to delay the case proceedings & frustrate Ripple Labs.

What Next ?

As per the court’s order, the defendants are supposed to file their answer on April 8, 2022. Once the answer is filed the SEC will have to inform the judge about its take on whether or not the regulator needs to conduct additional discovery in the Ripple case and this has to happen within a week of that filing from defendants. Nevertheless, the dates are not yet finalized and it all depends on how fast the Ripple Labs will file their answers.

XRP Community Reacts !

After the news about the court granting the time extension to SEC broke out, the XRP community gave a mixed reaction. While some expressed anger at the SEC saying they are just trying to gain time in a case already lost. On the contrary, others are of the opinion that the delay could be good for XRP in the long run.

At the press time, XRP has surged by 1.51% trading at $0.835 heading strongly towards $1.