Ripple v. SEC: Ripple Enthusiasts Stunned as SEC Says It Will Not Seek Additional Discovery

Ripple Enthusiasts Stunned as SEC Says It Will Not Seek Additional Discovery.

The Ripple (XRP) community was in shock yesterday after the SEC disclosed that it does not seek to take additional discoveries at this time. This comes after the court requested that the SEC state its position on the additional discovery by April 15, 2022. 

#XRPCommunity #SECGov v. #Ripple #XRP The SEC has filed a letter stating that it does not seek to take additional discovery at this time, but both parties reserve their rights to take discovery limited to the disgorgement issue, if necessary, after liability is decided. pic.twitter.com/YQHIbTJQHS

— James K. Filan ????90k+ (beware of imposters) (@FilanLaw) April 15, 2022

“Pursuant to this court’s March 23 order and after the meeting and conferring with Individual Defendants on April 14, 2022, the Securities and Exchange Commission respectfully informs the court that the SEC does not seek to take any additional discovery at this time,” excerpts of the agency’s recent letter to the New York Southern District Court read. 

However, while the security agency will not currently be taking additional discovery, it stated in the letter that both the SEC and the Individual Defendants may decide to take discovery limited to disgorgement issues whenever necessary. 

SEC Decides Not to Embark on Any Delay 

Recall that the SEC has been accused of employing delay tactics to drag the lawsuit as far as possible in order to frustrate Ripple into negotiating a settlement in its favor. 

The securities agency had requested time extensions to respond to issues on numerous occasions, even on the simplest of issues. 

While many followers of the lawsuit expected the SEC to seek additional discovery, the Securities and Exchange Commission did the exact opposite.   

Ripple Enthusiasts Stunned

The news shocked many Ripple enthusiasts who have followed the case since the blockchain company was charged for conducting unregistered securities offerings in the United States. 

Many Ripple enthusiasts have taken to various social media platforms to express their surprise about the SEC’s decision not to take additional discovery. 

Attorney Jeremy Hogan, a partner at Hogan & Hogan law firm, noted on Twitter that he was surprised by the SEC’s actions, which is a good thing and a major win for Ripple given the consistency of the agency’s delay efforts.  

“The only remaining areas of delay are the appeal of the Hinman emails and in general just scheduling. The SEC discovery is complete and that’s a big step forward,” he added. 

Almost NOTHING would have surprised me more than this.

And yes, this is a very good thing. The only remaining areas of delay are the appeal re the Hinman emails and in general just scheduling.

SEC discovery is complete and that's a big step forward. https://t.co/Dh63kmG5uO

— Jeremy Hogan (@attorneyjeremy1) April 15, 2022

With the SEC’s additional discovery settled, the Ripple community is eager to know the details of the Joint Proposed Scheduling Order, which is due on April 22, 2022.