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The SEC’s lawsuit has reportedly been postponed by a month due to the rapid spread of the Omicron strain, Fox Business reported.
The deadline postponement letter is expected to be filed with the court on January 13, and it will most likely be a joint petition from both parties, Ripple and the SEC.
“If they submit a joint request, the judge will sign it,” attorney Jeremy Hogan and XRP community member commented on Twitter.
As we await the filing in court, XRP investors and the broader crypto and legal communities watching the case are wondering why Ripple agreed to the transfer.
The fight is heating up
The SEC recently filed a seemingly similar case in which the court ruled in favor of the SEC.
“Indeed, the court dismissed the defendants’ defense in the dismissal motion, despite acknowledging that there were no“ mandatory powers ”defining the term“ dealer ”. In the case of Ripple, the binding body that defines the term “investment contract” has been in existence since 1946. “
Ripple objected that the Fife analogy does not fit his case and his fourth affirmative defense.
Fife did not endorse the SEC’s proposal to defend Ripple, saying it lacked proper notice that XRP was an investment contract. The court stated that at the stage of consideration of the case, it will not reject the SEC’s complaint.
Ripple’s chief attorney urges SEC to move the case as quickly as possible
More recently, Ripple’s general counsel Stuart Alderoti accused the SEC of playing a “delay card.”
He urged the regulator to address the case “as soon as possible”.
SEC Chairman Gary Gensler used a football metaphor to emphasize adherence to the rules. He tweeted that teams will start breaking the rules without fear of penalties, which will make the game unfair.
Alderoti, criticized the SEC for using “regulation by enforcement” to achieve philanthropy, arguing that it creates an uneven playing field that creates winners and losers.
Ripple CEO Brad Garlinghouse recently criticized former SEC chairman Jay Clayton for adopting the cryptocurrency after trying to strangle the industry with a last-minute lawsuit against Ripple.
A hearing is currently scheduled for January 19, but the judge is expected to approve the request. Eight expert witnesses have not yet been questioned due to travel difficulties and “unforeseen personal circumstances”.
According to Fox business reporter Charles Gasparino, Ripple’s legal team sees the delay as a good thing, as it will be possible to question witnesses in more detail.
Ripple is also awaiting a court ruling on its petition for SEC internal filings, which could possibly explain why Ethereum, rather than XRP, received a grace period from the SEC.
Posted by Anastasia Zapolskaya, analyst at Freedman Сlub Crypto News
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