Ripple and XRP Holders fail to convince Judge: SEC granted two-month extension

We have covered the SEC’s request to extend the expert discovery deadline from November 12, 2021, to January 14, 2022.

Our recent article includes the transcription of parts of the SEC letter and comments from Ripple’s General Counsel Stuart Alderoty, attorney Jeremy Hogan, and even Judge Torres, who had denied the XRP Holders’ motion to intervene on the grounds that “the court is not inclinded to permit further delay”.

Since then, Ripple filed its opposition to the extension, arguing that it is needless and that further delay would prejudice Ripple and the market for XRP.

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John Deaton, on behalf of the XRP Holders, also filed a motion requesting the court to consider their perspective on the matter under their Amicus Curiae status, recently attributed.

“In opposing the SEC’s request for this delay, Ripple’s argument focuses on how the “freezing” of XRP markets within the United States impacts Ripple. The negative impact on XRP Holders is even more profound”, he wrote, adding that nearly every digital asset exchange in the United States.

“In addition to owning XRP on those exchanges, many XRP Holders hold XRP in retirement brokerage accounts. The
XRP in these retirement accounts have also been “frozen” due to the SEC enforcement action alleging XRP to be an unregistered security. The lack of liquidity within the United States, coupled with the mass de-listings prevents XRP Holders from trading, selling, transferring, or converting their XRP.

Judge Sarah Netburn denied John Deaton’s motion and ordered the expert discovery deadline extension to January 14, 2022, as requested by the Securities and Exchange Commission.

“While the Court recognizes that both parties have dedicated substantial resources to prosecute this case, given the pending motions to dismiss and strike, and the previous adjournment of any deadline to file a motion for summary judgment, the additional time sought by the SEC will not affect the schedule to resolve this case.

“Rather, the additional time sought by the SEC will allow both sides to complete the outstanding fact discovery and properly prepare for expert depositions”, Judge Netburn wrote.

Some might disagree with the Judge’s statement that the extension of the expert discovery deadline by two months will not affect the schedule of the SEC v. Ripple lawsuit.

Attorney Jeremy Hogan has commented on that: “Judge argues that the additional time will not affect the schedule to resolve the case but I don’t see how that is possible; it HAS to affect the schedule for briefing summary judgment. Case summary judgment resolution now not until March-May 2022.”

The discovery deadline extension will provide more time for the SEC to analyze Ripple’s recordings in search of evidence that the company and the individual defendants marketed XRP as a security.

On the other hand, it will also give the SEC more time to answer the nearly 30,000 requests for admission presented by Ripple.