The Ripple vs. SEC case will be pushed a month back due to the surging Omicron variant of the Coronavirus in the US. This was revealed in a tweet by Eleanor Terrett who is a well-known journalist at Fox Business.
Eleanor tweeted, “The expert discovery deadline in the Ripple vs. SEC case will be pushed back a month due to the rapid spread of the Omicron variant. A source close to the case tells @FoxBusiness a letter outlining this new motion will be filed in court as early as tomorrow.”
SCOOP: The expert discovery deadline in the Ripple vs. SEC case will be pushed back a month due to the rapid spread of the Omicron variant. A source close to the case tells @FoxBusiness a letter outlining this new motion will be filed in court as early as tomorrow. #XRP
— Eleanor Terrett (@EleanorTerrett) January 12, 2022
SEC vs Ripple case
Before going into the details, it is imperative to know what exactly the case between Ripple and SEC is. The SEC had filed a case on December 22, 2020, against Ripple Labs and two of its executives. The SEC contends that Tipple traded $1.3 billion in their cryptocurrency XRP as security without registering it with the SEC. Ripple and other parties have since countered with claims that the SEC is biased in its assessment.
Most of the companies who have faced the wrath of the SEC often acceded to the demands and went on for a compromise. However, Ripple is not taking the matter lying down and has decided to take the case to its logical conclusion.
Ripple accuses the SEC of bias and applies the definition of “security” to virtual currencies. If this is proven to be true, it would undercut the commission’s authority, not to mention blemish the credibility of their case.
Under SEC regulations, securities must be registered with the commission, and specific financial statements must be publicly disclosed. The objective is to negate fraud and protect the stakes of investors.