Judge grants SEC’s deadline extension on Ripple case

    2024.03.03 | exchangesranking | 98onlookers

    Judge Analisa Torres has approved a request from the Securities and Exchange Commission (SEC) to extend the deadline for filing a submission that could lead Ripple Labs’ case to an end.

    Court documents filed on March 1 granted the SEC an extension to file its remedies-related discovery materials submitted by Ripple. The extension allows the regulator to file its opening brief until March 22. The deadline for Ripple's opposition brief has also been extended to April 22, and the new deadline for the SEC to file a reply would be May 6, 2024.

    A remedies-related briefing is a document describing potential legal remedies and actions that could be considered or pursued in connection with the litigation.

    SEC’s request for a deadline extension. Source: PARCE.

    The SEC’s case against Ripple Labs began in December 2020, when the regulator accused Ripple Labs, along with its CEO Brad Garlinghouse and co-founder Chris Larsen, of conducting a $1.3 billion unregistered securities offering through sales of the XRP token.

    According to the SEC, the token should be classified as a security and thus subject to strict regulatory requirements. Ripple, on the other hand, argued that XRP is not a security and that the SEC failed to provide them with fair notice regarding its classification.

    The lawsuit has seen numerous developments and legal battles over the years. One significant aspect is the discussion around the “Howey test,” which is used to determine whether a transaction qualifies as an “investment contract” under U.S. law. According to the SEC, XRP meets the conditions of the Howey test, while Ripple argues otherwise.

    In a major development in July 2023, Judge Analisa Torres ruled partially in favor of Ripple Labs, determining that XRP was not a security in the context of its programmatic sales on digital asset exchanges. However, the judge also ruled that XRP was considered a security when sold to institutional investors.

    Cointelegraph has contacted Ripple but has not received a response yet.

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