The SEC and Ripple legal counsels have agreed that their next court hearing will be by December 2022 as the court battle with them continues. Hence, it is likely that any resolution of this case will likely happen by next year. Ripple and SEC jointly wrote the extension letter to the presiding judge (Sarah Netburn). Netburn, who has been in charge of the case since its inception, has approved the new date.
Why Did The SEC Take Ripple To Court?
Many people wonder why the SEC and Ripple are locked in a legal battle. The top financial watchdog sued Ripple in late 2020, accusing the blockchain of raising $1.3B cash from selling XRP tokens as Securities. According to the SEC, Ripple’s actions contravened the policy governing the sale of Securities
Also, the SEC indicted Ripple founders Chris Larsen and Bradley Garlinghouse (who doubled as the firm’s CEO). With both parties’ back and forth accusations, the case has continued to drag since that time and till next year, as agreed by both the SEC and Ripple lawyers.
Both Parties Agree To A New Timeline
Part of the letter in the revised timeline showed that all file statements from expert witnesses must be available by early august and objections by early November. Also, all responses to objections must be available by December 20. The SEC initiated the extension request for more time to gather enough evidence to appeal the ‘motion for reconsideration of the DPP ruling.’
This is the second time the SEC will be requesting such an extension during this case. One of Ripple’s legal counsels, Stuart Alderoty, thanked the crypto ecosystem for supporting them thus far in the case before adding that SEC under Gary Gensler hasn’t been supportive of the crypto industry. He further said that the SEC hasn’t proven how crypto tokens can be considered Securities. Hence, it is why the agency can’t shut down any crypto exchange.
The SEC Only Cares About Its Selfish Interest – Ripple Founder
Rupple founder, Brad Garlinghouse, has opined that the SEC’s case with its firm shows that the SEC hasn’t been playing by the rules it claims to uphold. Garlinghouse added that the commission finds it difficult to disclose information about important issues, and they don’t mind whether the US fall as long as their claimed policies are protected.
He further said that the ongoing case proves the need for a proper crypto regulatory policy. “The SEC keeps playing politics with its policy, which doesn’t bode well for our country and citizens.” Garlinghouse’s comments were part of a response to the firm’s legal counsel, Stuart Alderoty, who claimed that the SEC is confusing the crypto market because it doesn’t have any oversight functions over the two trillion-dollar industry. While many industry experts have reiterated Alderoty’s stance, the SEC has maintained that its policies aren’t ambiguous.