Ripple Deadline Extension Request Further Troubles XRP Bulls

YEREVAN (CoinChapter.com) — New updates are emerging in the SEC vs Ripple case. Ripple recently sought the court to extend its deadline to submit internal financial documents and contracts to the SEC from Feb. 12 to Feb. 20.

Did You know? On Dec. 22, 2020, the SEC initiated a civil action against Ripple, Chris Larsen, and Brad Garlinghouse. The lawsuit claimed that Ripple should have registered the distribution of the digital asset XRP, dating back to 2013, as a security. The agency then withdrew allegations against both executives.

The Necessity for A Deadline Extension

Ripple requested the US District Court for the Southern District of New York, arguing that without the extension, they would only have one week to respond to discovery requests that demand a large volume of documents.

The request is notable as it comes with the consent of the SEC, indicating a rare moment of agreement between the two parties in this ongoing legal battle. This development follows a legal victory for the SEC, with Magistrate Judge Sarah Netburn ruling that Ripple must provide the requested discovery, overcoming Ripple’s procedural objections​​​​​​.

The SEC’s agreement not to oppose this extension highlights an unusual cooperative stance in a contentious legal fight. Meanwhile, the deadline extension request came after Federal Judge Analisa Torres ordered Ripple to hand over the financial statements of XRP to the SEC.

In detail, the regulator requested the information in early January, believing it would help determine potential penalties or injunctions for alleged ongoing securities violations. These documents include post-complaint contracts governing XRP institutional sales and financial statements for 2022-23. Ripple opposed this Motion to Compel on Jan. 19 but lost.

Meanwhile, the XRP coin price held support at $0.5, seeming unaffected by the court proceedings.

XRP Price Stagnates

XRP Price is largely dependent on the SEC vs Ripple proceedings. However, the recent developments have not yet swayed the price in any particular direction. XRP price action flatlined along a resistance-turned-support line that has been relevant since September 2022.

As a result, the price slid by merely 0.28% on Feb. 6, reaching, as mentioned, $0.5. Meanwhile, the coin’s trading volumes increased by 10%, which could indicate a ‘battle’ between buyers and sellers. However, ranks of the whales, i.e., addresses with large amounts of XRP, receded in the previous month.