The Securities and Exchange Commission (SEC) requested an extension of time to file a submission that would conclude Ripple Labs’ legal dispute, and Judge Analisa Torres granted the request.
According to court records from March 1, the SEC was given an extension to submit discovery information relevant to remedies that Ripple had submitted.
The extension gives the regulator until March 22 to submit its opening brief. The SEC’s new deadline for filing a response is May 6, 2024, and Ripple’s opposition brief date has also been extended to April 22.
A document outlining prospective legal remedies and actions that might be taken into consideration or pursued in connection with the dispute is known as a remedies-related briefing.
The SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the company, its co-founder Chris Larsen, and CEO Brad Garlinghouse had conducted an unregistered securities offering through sales of the XRP coin, worth $1.3 billion.
The SEC claims that the token ought to be categorized as a security and be governed by stringent laws. Conversely, Ripple contended that XRP is not a security and that they were not given adequate notice by the SEC about its classification.
Over the years, the lawsuit has witnessed several developments and court battles. The debate around the “Howey test,” which establishes whether a transaction meets the requirements to be classified as a “investment contract” under US law, is one important component.
The SEC claims that XRP satisfies the Howey test requirements, although Ripple disputes this.
Judge Analisa Torres made a significant ruling in July 2023, partially supporting Ripple Labs by ruling that XRP was not a security to its programmatic sales on digital asset exchanges. However the judge also decided that when XRP was offered to institutional buyers, it was regarded as a security.
Also Read: Ripple Requests Extension Of One Week for SEC Documentation