524 Interactions, 2 today
Since the US Securities and Exchange Commission initially brought accusations against Ripple Labs a few months ago, “small victories” have been difficult to come by for the regulatory agency. While the defendants have had some success in recent judicial procedures, the same cannot be said for the SEC.
However, that is no longer the case, with the newest development in the ongoing action between the SEC and Ripple clearly favouring the former. In the most recent development, Judge Sarah Netburn approved the SEC’s request to extend discovery timelines. According to the judge’s ruling, the time for conducting fact discovery has been extended until August 31st, while the time for expert discovery has been extended until October 15th.
In its initial pleadings requesting the same, the SEC had argued that it needed additional time to “develop the factual record in the matter.” By granting such a request, the agency had asserted, the defendants would not suffer any “cognizable prejudice.”
Needless to say, Ripple itself wasn’t impressed by the SEC’s request, with the blockchain firm responding to the same by arguing otherwise and suggesting that the agency was yet to show good cause to extend discovery.
Here, it’s worth noting that Judge Netburn’s latest order on the SEC’s motion is a “text-only” order. Simply put, the judge did not publish her explanations or legal reasoning behind the grant of such a request.
Either way, the present development has fueled quite a few reactions online, especially among the XRP community. Attorney James Filan was one of those to comment on the same, with Filan stating,
“It could also be as simple as Judge Torres needing additional time to work through the substantive motions.”
Curiously, when the motion was first filed by the Securities and Exchange Commission, Filan had been quick to say that Judge Netburn won’t be particularly impressed since the motion “completely disrespected” her “strong and efficient handling of the case and her fast resolution of disputes.”
At the time of writing, the implications of Judge Netburn’s ruling on the present motion were also being realized by many in the community, with attorney Jeremy Hogan tweeting,
“Not unexpected, but this will push the entire case back 60 days. That would mean (quick calculations) Summary Judgment sometime in December/January. Absent a settlement, this case is going to end in early 2022!”
Ergo, it would seem that people were wrong to suggest that the SEC “has bitten off more than it can chew” when it first filed the motion.