Ripple's defense claims exchange regulator is causing irreparable damage to the company's products in the US through constant delays.
June 10, 2021 | AtoZ Markets – On June 3, the US Securities and Exchange Commission (SEC) officially asked the federal judge for a 60-day extension of discovery in Ripple's case. The SEC claims it needs more time to find more witnesses in the case.
Ripple lawyers objected to SEC's extension request
According to Ripple's lawyers, however, the regulator did not provide any compelling reason for another delay. As a result, SEC's new request poses an "existential threat" to the company's US business, Ripple lawyers stated in a note of appeal to Judge Analisa Torres.
“The SEC letter misstates Ripple's reasons for opposing the expansion of discoveries. Ripple opposes this extension because the delay will be extremely detrimental to Ripple and there is no good reason to change its discovery program.”
James K. Philan, Ripple's attorney who is representing the company in the SEC's court, said the company went to court to dismiss the regulator's request for a deferral.
According to the defense, the SEC knew in advance what facts it needed to have on hand. In addition, the very lack of evidence lends credence to Ripple's argument that the SEC acted imprudently when requesting an extension to seek new evidence.
"This litigation already threatens Ripple to destroy the company's operations in the United States," the defense added.
At the same time, the exchange regulator claims that the delay is necessary, since "it has not yet finished analyzing the Ripple documents."
Read also: Ripple Petitions SEC to Investigate Foreign Exchanges
Ripple's lawyers previously said the commission is trying to mislead the court, citing its previous lawsuits against cryptocurrency companies. According to the fintech company, the SEC's accusations that XRP is a security are the first in court practice. Ripple also claims that the regulator has never notified the company of a violation of the law due to XRP sales.
At the same time, the SEC has already managed to threaten the court with "far-reaching consequences." The exchange regulator believes that losing the case against Ripple "will harm the SEC far beyond the scope of this case."
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