By Shelly Melancon (Switzerland)
James K. Filan, one of the legal defendants for ripple labs in their lawsuit with SEC, has revealed on Twitter that Ripple has legally objected to SEC’s call for a 2-month extension to the discovery deadline in the blockchain company’s case.
James Filan’s tweet. Source: Twitter
“SEC’s Request Would Be Prejudicial To Ripple”
As previously reported in various media six days ago, the financial regulators requested that the discovery deadline in Ripple’s judicial proceedings be extended by two months. The SEC asserts that it needs another two months to depose additional witnesses regarding the lawsuit despite deposing and interviewing witnesses for two days already. However, Ripple’s legal reps have objected to the judge stating that the SEC’s reason is insufficient to warrant a change in the discovery plan.
They further stated that the SEC’s argument for an extension isn’t enough to cause a delay in Ripple’s business. So, they prayed the court not to grant the SEC’s request. An overview of Ripple’s letter to the court is that granting the SEC request will cause a severe threat to Ripple’s business in the country.
Ripple CEO and Ex-SEC Chairman Trade Words
In a related development, ex-SEC chairman Jay Clayton released an editorial piece concerning the crypto regulation issues. He called the virtual assets a “digital storm that will soon affect the entire financial services industry.”
Also read:He also said that US regulators aren’t strange to using these digital currencies for financial transactions, especially payments. Hence, he opined that financial authorities need to resolve all crypto-related issues quickly before these issues escalate to unresolvable proportions.
Clayton was quoted as saying, “if there is a regulatory vacuum based on a survey by financial regulators, then they need to fill it up by all means necessary. But the process of filling the vacuum shouldn’t start with revamping the whole regulation.”
The ex-SEC chairman cited the example of bearer bonds, stating that national and international agencies collaborated to stop that market without any adverse effect on the entire bond market. He suggested that a similar approach be deployed in this case stating this method should be applied to new tools with similar risks, such as bitcoin transfer using an anonymous wallet.
Ripple’s CEO responded to Clayton’s assertions via Twitter, referring to it as “definitely ironic.” Garlinghouse said, “here’s my takeaway from this, jay Clayton’s clamor for regulatory clarity in crypto because it suppresses innovation in our dear country is ironic, but coming out with his opinions is better late than never.” Garlinghouse further revealed his opinion regarding the legal and illegal use of the technology. He said that it’s only the legitimate companies that are facing legal battles.
It would be recalled that during Clayton’s tenure as SEC chairman, he refused to approve any bitcoin exchange-traded funds (ETF), and towards the end of his tenure, he started a legal battle with Ripple. The legal battle between SEC and Ripple continues unabated and has remained a hot discourse within the crypto community.
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