The Securities and Exchange Commission (SEC) is oft predictable when it comes to crypto regulation. Seemingly monthly, the agency opens a new probe into a new exchange or project, all revolving around whether or not that company was offering a currency or a security. But while the SEC seems confident that most cryptos are securities, its landmark court case against Ripple (XRP-USD) is far from open and shut. Almost two years on, the SEC is trying to buy itself time this week to strengthen its case and build some momentum. The XRP crypto is gaining accordingly.
It certainly seems as though Ripple is increasing the heat in its lawsuit battle against the SEC. Earlier today, the SEC filed to have the case delayed. Where before, both parties were expected to file their reply briefs for summary judgment by Nov. 15, the filing seeks to push the deadline to Nov. 30. The filing also requests deadlines for omnibus motion opposition be extended into 2023.
Ripple is already agreeing to the terms of this filing. It is only up to the judge presiding over the case to give final approval.
The decision comes just after Ripple got a massive boost to its side of the case. The company is seeing a total of 12 amici briefs submitted on its behalf. These briefs come by way of developers, companies, exchanges and other entities. And, they all argue that the SEC’s case is misguided. Ripple Labs CEO Brad Garlinghouse has noted that this is an unprecedented event this far into a case:
For those of you keeping count, 12 (!) amici briefs submitted. It’s unprecedented (I’m told) to have this happen at this stage. They each explain – in their own unique way – the irreparable harm the SEC will do to every facet of the US crypto economy if it gets its way. https://t.co/Na9fWq3GvO
— Brad Garlinghouse (@bgarlinghouse) November 3, 2022
XRP Crypto Pops on Ripple Court Case News
The filing by the SEC is leading many, Garlinghouse included, to believe that the SEC is in panic mode. It looks like the agency is buying itself more time to strengthen its defense. And it makes sense for the SEC to do such a thing.
This is the longest crypto court case ever for the SEC. With the suit being filed in late 2020, the agency has sunk a lot of time, effort and money into it, and with good reason. If the SEC succeeds in painting XRP as a security, it then has the precedent needed to go after dozens upon dozens of other cryptocurrencies for the same unregistered securities offering charges.
Ripple stands to greatly benefit if it wins, as well. Investors are expecting a major price catalyst in the case of a Ripple victory. And, escaping penalty-free will leave Ripple Labs with plenty of new time and effort to direct into growing its business. This is all not to mention the implications for other cryptos as well. Indeed, if Ripple were to solidify its own status as a currency, it would free itself and many other cryptocurrencies from the SEC’s purview. Rather, they would likely be regulated by the likes of the much more crypto-friendly Commodity Futures Trading Commission (CFTC).
The news is a major confidence boost to XRP crypto investors. Predictably, it’s therefore leading to a boost in XRP prices. The coin is gaining about 8% so far today. Moreover, over $2.5 billion worth of the coins is trading hands in the last 24 hours, making for a 75% uptick in trading volume as investors take in the news.
On the date of publication, Brenden Rearick 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.