One of the long-standing issues in the crypto market, the legal battle between Ripple and SEC has been going on for over two years.
Let’s take a look at the notable timeline of Ripple and the SEC’s fight.
· Dec 2020
The SEC filed a lawsuit against Ripple Labs, alleging that they had conducted an unregistered securities offering by selling XRPtokens.
· Jan 2021
Ripple filed its initial response to the SEC’s lawsuit, denying the allegations and arguing that XRP is not a security. Ripple also files a motion to dismiss the SEC’s lawsuit.
· Feb 2021SEC files a response to Ripple Labs’ motion to dismiss, arguing that Ripple Labs should’ve known they were violating securities laws.
Ripple files a reply citing SEC had failed to provide fair notice.
· March 2021
Judge Analisa Torres denies Riplle Labs’ motion to dismiss the SEC’s lawsuit.
· April 2021
Ripple filed its response to the SEC’s amended complaint, reiterating its argument that XRP is not a security and accusing the SEC of acting outside its authority. SEC files a motion to strike some of Ripple Labs’ affirmative defenses, arguing that they are irrelevant or improper.
· May 2021The SEC requested that the court order Ripple to turn over internal emails and other documents that could shed light on the company’s XRP sales and marketing practices.
· June 2021Ripple Labs files a letter with the court objecting to the SEC’s request for additional documents, arguing it is burdensome and unnecessary.
· July 2021The SEC asks the court to limit Ripple’s access to internal SEC documents and communications, arguing that the company was seeking irrelevant and privileged information.
Judge Sarah Netburn grants in part and denies in part the SEC’s motion to strike Ripple Labs’ affirmative defenses. Judge Netborn also orders Ripple Labs to produce documents related to XRP sales to exchanges outside of the US.
· Aug 2021The SEC requested that the court deny Ripple’s motion to dismiss the lawsuit.
The SEC also files a letter with the court arguing that Ripple Labs has not produced all of the documents required by the court’s order.
Judge Netborn denies the SEC’s request for additional documents from Ripple Labs.
· Sep 2021The SEC files a letter with the court requesting that the court limit Ripple Labs’ ability to file certain motions.
Ripple files a motion to compel the SEC to produce documents related to Bitcoin, Ethereum, and XRP arguing the documents were relevant to the SEC’s allegations that XRP was security.
The SEC opposed the motion, arguing that the documents were not relevant and unduly burdensome.
Ripple filed a motion to dismiss the SEC’s amended complaint, arguing that the SEC had failed to state a claim under the Howey test and that the SEC’s claims were time-barred.
· Oct 2021Judge Netburn grants Ripple’s motion to compel the SEC to produce Bitcoin and Ethereum documents.
· April 2022A new timeline is agreed upon by both parties. All final briefs are due on December 20th, 2022
If there is no settlement reached by then, the end of March (2023) will be when a decision is made. Both parties are making final submissions and awaiting summary judgment by March 31, 2023.
According to Ripple General Counsel Stuart Alderoty, “The SEC has lost 4 of its last 5 cases in the Supreme Court….”
What are your thoughts? Is XRP a security? Who will win this lawsuit? Perhaps they will settle?
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