Ripple Vs. SEC Lawsuit: Court Gives Regulator Tight Deadline To Strike Back

In the latest updates on the court case between Ripple and the United States Securities and Exchange Commission (SEC), the Magistrate Judge Sarah Netburn, has ordered strict deadlines for the regulatory agency to respond to the crypto firm’s motion. 

Judge Issues New Scheduling Order

On Thursday, April 25, the magistrate Judge Netburn issued a new scheduling order regarding the years-long legal battle between Ripple and the US SEC. 

Former federal prosecutor and defense lawyer, James K. Filan shared details of the scheduling order in an X (formerly Twitter) post. The order states that the SEC has been granted a deadline of Monday, April 29, 2024, to file a rebuttal to Ripple’s Motion to Strike. Following this, Ripple is mandated to file a response within three business days. 

This order is a critical step in Ripple’s case with the SEC, as it will potentially address the SEC’s recent submission of its motion to strengthen the remedies and entry of final judgment. Previously, on April 22, the company filed a motion to strike the SEC’s newly submitted expert materials, arguing that the regulator had introduced the filings beyond the allocated time frame, thereby violating discovery rules.

The digital asset payment company had rejected the $2 billion penalty levied by the regulator earlier in April, contending that the SEC’s demands were excessive and petitioning the court to impose a civil penalty not exceeding $10 million. Ripple has remained defiant in its defense that XRP was not intended as an investment vehicle, as such, should not be classified as a security. 

More Updates On The Ripple And SEC Case

The Ripple and SEC case continues to be a major legal battle that could have significant implications within the broader cryptocurrency space and the financial industry. The court case keeps evolving, with new updates and changes occurring regularly. 

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Recently, Magistrate Judge Sarah was nominated as the District Judge in the Southern District of New York. As a result, she is preceding the Ripple and SEC court case, however has not issued a final ruling on Ripple’s penalty despite the SEC’s exorbitant demands. 

Despite having a pro-crypto stance, Magistrate Judge Netburn is determined to give a fair ruling, considering the cases of both parties and deciding on the penalties or conclusion of the case. Overall, the broader crypto industry is still watching as the legal battle unfolds, with the majority of the XRP community supporting Ripple’s stance and criticizing the SEC’s enforcement actions towards the cryptocurrency space.

XRP falls as lawsuit rages on | Source: XRPUSDT on Tradingview.com

Featured image from The Cryptonomist, chart from Tradingview.com