Ripple fails to stop discovery extension amid SEC’s 180º on Hinman’s speech

Rick Steves

The plaintiff has made a 180º turn by suggesting that the speech wasn’t merely peripheral to actual policy formulation”, but was in fact an “essential link” in the SEC’s deliberative process with respect to Ether” and other digital assets. 

Judge Sarah Netburn has granted, in part, the SEC’s request for extension of time regarding reconsideration of her DPP Ruling much to the surprise of the wider community following the case.

Expert discovery had been pushed back by one month due to the spread of the Omicron variant following a joint motion. After that court decision, attorney Jeremy Hogan said the change in schedule is likely to mean the judicial end of the SEC v. Ripple lawsuit would be in August – September 2022.

Now that the SEC has been granted an extension in order to file a motion for the reconsideration of the court’s recent DPP Ruling, expert discovery won’t conclude until March at the earliest.

Discovery won’t conclude until March at the earliest

“The SEC’s request is granted in part. The SEC may file any motion for reconsideration by February 17, 2022, and the Defendants may file their response by February 25, 2022”, wrote Judge Sarah Netburn in the court order.

“No reply briefs are permitted. Briefs shall be limited to ten pages (double-spaced) and the publicly-filed versions should be minimally redacted. The SEC may submit 10 additional documents for in camera review, along with its motion.

“The deadline for either party to file an objection to District Judge Torres from the Court’s January 13, 2022 Opinion & Order is stayed until 14 days from a decision on the motion for reconsideration.”

The wider XRP community was surprised by the decision as Ripple’s objection to the request pointed to the “plainly not appropriate” arguments that the SEC was raising.

The SEC seems to be desperately trying to overturn the ruling that made available to Ripple the documents regarding emails and drafts of ex-SEC Director Hinman’s 2018 speech.

The plaintiff has made a 180º turn by suggesting that the speech wasn’t merely peripheral to actual policy formulation”, but was in fact an “essential link” in the SEC’s deliberative process with respect to Ether” and other digital assets.

This statement goes 100% against the SEC’s prior position on the matter as the agency said in court the speech was Hinman’s personal opinion. Ripple CTO David Schwartz even choked on his Diet Coke, he said earlier this week.

“Hard to spin this favorably […] The only thing I can think of is maybe the Judge suspects the SEC will not only appeal her decision to Judge Torres but also to the 2nd Circuit and she wants to issue a bulletproof decision”, said XRP Holders’ John Deaton.

“There’s no silver lining in this ruling granting the SEC extensions of time – even if the order on the Motion for Reconsideration is eventually upheld. Now discovery won’t conclude until March at the earliest”, Jeremy Hogan also commented.

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