The U.S. regulatory body, SEC, has requested the presiding judge over the current SEC vs Ripple case for an extension. The release of the motion had a negative impact on the price of Ripples’ token, XRP. It experienced a downtrend of 1.30% in price as at the time of publication.
SEC Requests Court To Extend The Deadline Of Ripple Vs SEC Case
On the 21st of May, the counsel of six amici curiae filed a letter which the SEC has to comply with. However, instead of giving a prompt response, SEC filed an extension to process its response. The news of the motion filed by the SEC has stirred a lot of doubt in a lot of minds. It is no longer clear when and how the lawsuit would end as the SEC had chosen to delay the case.
Amici curiae is an individual or a group selected to help solve an ongoing legal case with valuable and just insight.
Justice Analisa Torres had initially passed the motion to make holders of XRP to be the amici curiae. As the presiding judge, she believed they would help to solve the case justly.
Nonetheless, crypto speculators believed the motion filed by the SEC was to forestall the amici curiae order. Consequently, there have been conflicting opinions in the market ever since.
The Ripple Vs SEC War: When it all Began
Two years ago when the ongoing SEC vs Ripple started, it stirred a lot of disturbance in the market. Many Cryptocurrency exchanges stopped supporting XRP as it was accused of being a security token.
On the one hand, Ripple has been emphasizing that XRP is never a security but a utility token. On the other hand, SEC kept waging war, claiming XRP is an illegal security offering. The regulatory body also accused Ripple of hiding essential documents on the finance and management of the crypto firm. The SEC also accused the exchange of raising $1.3 billion illegally from which their top executives enriched their pockets.
The crypto firm kept retorting that the regulatory body is twisting facts. They claimed their native token is nowhere close to the standards of being a security scheme. More so, Ripple tweeted that SEC’s Lawsuit was a battle on the whole crypto industry, not on Ripple alone. These and more accusations thrown at Ripple have met with constant denial since the case had begun.
When the lawsuit will end is not yet certain due to the recent extension request that SEC made. Many crypto analysts had reasoned that there is possibility that the case would transcend to 2023.