The SEC requests yet another extension, is the Ripple lawsuit crumbling?

• The SEC’s motion against Ripple was filed to the United States Magistrate Judge from Southern District of New York, Hon. Sarah Netburn.
• The SEC argued that it is premature to agree to a remedies-related discovery schedule before receiving the individual defendants’ answer.

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The United States Securities and Exchange Commission (SEC) has filed for an extension of time in the Ripple lawsuit. According to documents released by the defense lawyer and former federal prosecutor James K. Filan, the SEC is asking the Court to extend the March 23, 2022 deadline for the parties to propose a discovery schedule for the Individual Defendants.

That means another delay for the RippleNet integration with ODL in the United States market. Moreover, the On-Demand Liquidity (ODL) relies on XRP to facilitate cross-border payments.

Consequently, the XRP price remains suppressed in price by the lawsuit. Nevertheless, the short-term volatility has favored XRP traders. According to our data, XRP exchanged hands for around 85 cents. 

Further details on the SEC’s motion against Ripple

The SEC’s motion against Ripple was filed to the United States Magistrate Judge from Southern District of New York, Hon. Sarah Netburn. According to the motion, the SEC has requested the court to permit a brief extension. However, the request is under some conditions. Among them is the extension to happen until no later than one week after the individual defendants filed their answers. The SEC noted;

Pursuant to the Court’s March 14, 2022 Order (DKT 444), the parties met and conferred on March 17, 2022, to determine whether additional discovery is necessary. During the meeting, counsel for the Individual Defendants advised that they do not set to conduct liability-related discovery now, but want to reserve their abilities to conduct remedies-related discovery until summary judgment motions are decided 

However, the SEC argued that it is premature to agree to a remedies-related discovery schedule until after receiving the individual defendants’ answer. Thereby creating an argument that may eventually see XRP’s final verdict delayed. 

The SEC further continued and said, “The individual defendants further requested, to which the SEC consents, an extension of the March 25, 2022 deadline to file their answers until April 18, 2022. Although the SEC does not anticipate requesting any additional liability-related discovery, the SEC is unable to commit to a position until after it has had an opportunity to review the Individual Defendants’ answer, including any affirmative defenses that they may assert and facts they plead in support.”

The SEC-Ripple lawsuit has been in the courts’ corridors for the past year-plus. The SEC accused Ripple of raising billions through XRP, which the agency regards as security.