SEC v. Ripple: SEC wants more time to investigate case against Ripple
In other words, Ripple’s position is that it seems that the two and half year investigation before filing the lawsuit was not enough for the SEC to build the case. The regulator has also enjoyed nearly six months after filing the complaint.
The Securities and Exchange Commission has issued a motion to Judge Torres asking the court to “extend the deadlines for both fact and expert discovery by sixty (60) days”.
The regulator stated that “despite the parties’ diligent efforts in discovery”, the SEC has not yet received important documents from Ripple Labs and two third parties, as well as documents from former employees.
As admitted by the SEC, “defendants do not consent to the SEC’s request because they contend that the SEC had sufficient time to investigate this matter before filing suit and because Ripple wants to move for summary judgment as soon as possible.”
In other words, Ripple’s position is that it seems that the two and half year investigation before filing the lawsuit was not enough for the SEC to build the case. The regulator has also enjoyed nearly six months after filing the complaint.
In addition to this SEC’s request, both parties have filed a joint motion to extend the time until June 9, 2021, to meet and confer regarding document redactions and sealing of certain exhibits hoping “to avoid burdening the Court with unnecessary disputes”.
In regard to Ripple’s wish to move for summary judgement as soon as possible, the SEC refers to Ripple’s intentions of ending the lawsuit on the Fair Notice debate, which has been said a win could “save the industry from the SEC”.
“It becomes persuasive authority for any crypto company the SEC sues from this point forward. If the Fair Notice defense survives and Ripple wins, the SEC is going to have an uphill battle winning any other lawsuit they bring”, said attorney Jeremy Hogan.
“But it’s even bigger than that. . . Even if Ripple loses the Fair Notice defense, they can appeal the ruling. And if an appellate court determines that Judge Torres was wrong and Ripple did not have Fair Notice, then the SEC is now really in trouble because that ruling is binding on every crypto lawsuit that comes along.
“For the most part, the SEC will not be able to bring any more crypto lawsuits if that happens and, the SEC is funded by the fines and such from these lawsuits so…read between the lines”, he explained.
A few days ago, the court denied the SEC’s motion to compel Ripple to produce memos discussing XRP sales with the firm’s lawyers – a motion that Ripple Labs argued went against the rules of attorney-client privilege. This was an important win for Ripple.
