Ripple Case Update: Court Grants Motion to Extend Discovery Period
DailyCoin
Published Jun 17, 2021 12:00PM ET
Ripple Case Update: Court Grants Motion to Extend Discovery Period
- No clear headway for Ripple as the court grants the SEC’s motion to extend the discovery period in the case.
- Ripple is being sued over an alleged $1.3 billion unregistered security offering.
- Ripple CEO Brad Garlinghouse has stated that the company intends to go public after the suit with the SEC.
- A settlement in the corner? Analysts are divided but it remains a likely possibility.
As days go by, the case between Ripple and the Securities and Exchange Commission’s (SEC) intensifies even further. Both parties continue firing at each other in a case many predicted to have concluded by now. In recent events, the court has granted the SECs motion to extend the discovery period as it plans to continue its witness interrogation into new facts.
Ripple previously announced their plans to go public after the case with the SEC has concluded, and the extension of the case is to the detriment of the company.
Is The End Still Far Away?
In December 2020, the SEC announced that it filed charges against Ripple Labs Inc and its two principal members Christian Larson, the co-founder of the company, and Bradley Garlinghouse, the CEO, over an alleged $1.3 billion unregistered security offering.
In a trial that has had many ups and downs for both parties, the end may still be distant, due to recent developments.
Judge Netburn has granted the SEC’s motion for an extension of the discovery period in its case with Ripple. Though this looks like a win for the Commission, the court also denied other motions by the Commission against Ripple. The court denied the Commission’s requests seeking documents after the official complaint.
In another development, Ripple has also filed for the SEC to produce their internal documents which many believe will vindicate Ripple and lead to the SEC shooting themselves in the foot.
Due to recent developments, judgment will be expected in early 2022 with many XRP holders hoping for the end of the legal battle.
On the Flipside
- The motion of extension for the SEC may still not determine the case against Ripple as Ripple is ramping up little wins in the case.
- The matter looks likely to be settled out of court, something that is beneficial for both the SEC and Ripple.
Predicting the Future
Going forward, the case looks likely to end in a settlement. Gary Gensler, the head of the SEC is a crypto enthusiast with many suggesting he wants an end to this amicably.
Ripple plans on going public after the case, an enormous prospect for the company. With huge cash flow for Ripple Labs, it will continue to roll out new developments.
The SEC claims that Ripple is a security and not a currency with Ripple arguing otherwise. Ripple has also shown concern regarding the Commission’s decision to pursue XRP and not Bitcoin or Ether, claiming that all three are currencies. The SEC has stated that XRP is different due to the centralized nature of the company behind it.
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