Important Update for Ripple v. SEC Lawsuit

TL;DR

• The SEC has filed a motion against Ripple, demanding the company provide certain documents related to the lawsuit.
• Ripple seeks a brief extension to respond to the SEC’s demands for documentation regarding XRP sales.
• The legal conflict, starting in December 2020, heads towards a grand trial on April 23, 2024, with significant implications for the crypto market.

Has Ripple Violated Laws?

After a prolonged period of inactivity, The United States Securities and Exchange Commission (SEC) requested an order compelling the company to hand over two types of essential documents. These are its financial statements for 2022-2023 and its post-Complaint contracts governing “Institutional Sales.” Federal Judge Torres previously ruled that those transactions did constitute an unregistered securities offering.

Additionally, the regulator insisted Ripple answer a single interrogatory setting concerning the amount of XRP Institutional Sales proceeds received after filing the Complaint for contracts. The SEC’s recent action seeks to determine whether Ripple has violated certain securities laws.

The company’s attorneys filed a Motion for Extension of Time, requesting the deadline for a response to be prolonged to January 19:

“Ordinarily, Ripple’s response would be due on Wednesday, January 17, 2024. Ripple respectfully requests an additional two business days to fully respond to the Motion to Compel. This is Ripple’s first request for an extension of time.”

The Ripple v. SEC Saga Nears Trial

The fiasco between the two entities, which started in December 2020, has its trial scheduled for April 23, 2024. Ripple seemingly has the upper hand after securing three vital (yet partial) victories in 2023.

Both sides are required to comply with necessary procedures before meeting in court. The watchdog must file its brief with respect to remedies by March 13, 2024, whereas Ripple must file its opposition by April 12, 2024.

The XRP army (the way the crypto industry refers to XRP aficionados) and many industry participants await the outcome of the case due to its potential impact. A decisive win for Ripple might trigger an overall market boom, while the opposite scenario could hamper the sector and lead to the implementation of stringent rules.