The Impact of Ripple’s Delays on the Outcome of the SEC Lawsuit: A Closer Look at Ripple vs. SEC

Ripple Requests Extension to Answer SEC’s Motion

In a federal court filing, Ripple has asked for an extension of time to respond to the SEC’s motion, pushing the deadline from January 17 to January 19. The company wants to ensure that its lawyers, executives, and witnesses have ample time to prepare their materials.

Yassin Mobarak, the founder of Dizer Capital, believes that Ripple’s request for an extension is part of a strategic plan to prolong the lawsuit. He points out that time is not on the SEC’s side, estimating that it could take 6 to 9 months before any potential shifts due to upcoming U.S. elections. Mobarak suggests that if a crypto-friendly regulator replaces the current SEC leader, Gary Gensler, it could significantly impact the outcome of the case. By requesting postponements, Ripple is positioning itself in a more favorable position.

Mobarak also highlights the possibility of Gensler no longer being in his role when the next election occurs, potentially influencing the direction of the lawsuit. “If things get dragged out to a point where a pro-crypto SEC comes into play, the landscape for settlement changes,” Mobarak stated.

This change in approach to delay tactics by Ripple has caught Mobarak’s attention. While Ripple has previously requested extensions, this latest motion provides a fresh perspective on their intentions. It suggests that Ripple is now considering the completion of the background investigation into SEC managers, which could impact the case.

Mobarak emphasizes that time is the SEC’s most valuable resource. Any prolongation of the lawsuit could disrupt the order and responses. According to the court’s scheduling order, the SEC will make its final remedy stage motions filing on April 29, 2024. Fred Rispoli, a representative for XRP, predicts a ruling in early June. The legal strategies of both Ripple and the SEC are now intertwined.

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Ripple (XRP)