The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple, the parent company of XRP (XRP-USD), is heating up once again. For investors in the XRP crypto, there’s a lot to digest with this ongoing saga.
Way back in December 2020, the SEC filed a lawsuit against Ripple Labs. This lawsuit alleged that Ripple engaged in an unregistered security offering, bringing in $1.3 billion. Since then, a series of delays and litigation-related deadlines have ensued.
For investors in XRP, this has created a rather formidable headwind. In general, investors don’t like uncertainty. And lawsuits are inherently uncertain.
The outcome of these proceedings is far from a foregone conclusion. Indeed, while speculating is fun, that’s all investors really can do right now. As long as Ripple remains embroiled in this lawsuit, investor demand for XRP coins may be limited.
However, various proceedings have suggested that a resolution may be on the horizon. Let’s dive into the latest update in this saga for XRP.
Why April 8 Matters for Investors in XRP Crypto
Investors recently learned that the SEC was granted an extension to submit a discovery schedule in this ongoing lawsuit. Discovery relates to the pre-trial investigative phase where both parties in a lawsuit gather information. Whether it’s document requests or depositions, this is a time-consuming portion of any civil case. Now, the individual defendants in the case, who are Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, have until April 8 to submit their information. After that, the SEC must submit its discovery decision by April 15.
Accordingly, the SEC effectively pushed the ultimate resolution date even further down the road. This is one of many extensions that have been granted in this case, providing for a rather long and drawn out situation for investors.
Many who have followed this XRP legal drama have noted that any sort of resolution is likely to be positive for XRP holders. Thus, some worry that delays will further damage coin holders in the meantime. Some pundits have suggested that this most recent extension, while technically a small win for the SEC in the short term, may be positive for Ripple and XRP, as it suggests the SEC needs more time to build its case.
What the ultimate outcome will be in this case remains to be seen. However, more volatility is likely on the horizon for XRP. Until this gets settled, many investors may be more comfortable staying on the sidelines.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
