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Ripple Court Case: SEC Asks for Extension

Last Updated February 28, 2024 3:53 PM
Shraddha Sharma
Last Updated February 28, 2024 3:53 PM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • The SEC seeks an extra week for filing its remedies-related opening brief in its lawsuit with Ripple.
  • Any extension adjusts subsequent deadlines, prolonging the legal battle.
  • Ripple CEO and legal experts have been raising broader industry concerns on SEC’s regulatory stance.

The ongoing legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC) has been hit with another extension request that will adjust subsequent deadlines if approved.

The SEC has formally requested an extension for submitting its opening brief in the case. The agency has approached Judge Analisa Torres of the Southern District of New York with the request.

SEC’s Extension Request

In a formal request to Judge Torres, the SEC requested to push the deadline for its remedies-related opening brief from March 13 to March 22, 2024 over the scope of discovery with Ripple.

The SEC outlines the previous approval by Judge Sarah Netburn on February 5. This move gave Ripple an extra week for the initial discovery deadline. The agency noted: “The SEC respectfully seeks a nine-day extension to file its opening brief, to complete review of the recently produced documents and finalize remedies-related briefing.”

The adjustment would, if approved, also shift Ripple’s opposition brief and the SEC’s reply brief to April 22 and May 6 respectively. The filing argues “good cause”, while Ripple has agreed to the request.

 

 The request also notes that none of the parties have requested an extension in the remedies-related briefing schedule. However, there have been other extension requests in the past.

Industry Reactions and Commentary

Ripple CEO Brad Garlinghouse has been vocal about his views on the SEC’s regulatory approach. In the past, he called  SEC Chair Gary Gensler a “political liability” and critiqued the Commission’s stance on digital assets.

Many from the crypto community question the SEC’s attempts to regulate the industry without clear legislative authority. Some users on Twitter called SEC’s extension requests “delay tactics”.

 In a separate update , the Chamber of Digital Commerce has also stepped in, filing an amicus curiae brief in a related case to challenge the SEC’s regulatory overreach. It said: “Enforcement is NOT enough. While Congress works on solutions, @SECgov’s aggressive approach stifles innovation.”

Legal experts, including lawyer Bill Morgan, argue against the SEC’s interpretation of digital assets as inherently “investment contracts”, pointing out the need for deeper understanding.

More Than Two Years of Ripple-SEC Lawsuit

 The SEC-Ripple lawsuit has failed to reach a conclusion for over two years. Any extension requests prolong the legal battle but sometimes it is necessary for evidence discovery.

While Judge Torres will decide on the filing, the SEC’s digital asset regulation enforcements have been under fire. How digital assets are treated under US securities law and the application of what constitutes an investment contract will be crucial when it comes to deciding the legislative course in the US and globally. 

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