Dizer Capital Yassin Mobarak explains why time is of the essence for the SEC in its ongoing legal tussle with Ripple.
The recent development in the SEC v. Ripple lawsuit has continued to stir reactions from prominent crypto enthusiasts and legal experts.
Latest Development in SEC v. Ripple
For context, the SEC filed a motion with respect to remedies, asking the court to compel Ripple to produce its audited financial statement and respond to an interrogatory.
In response, the popular crypto payments firm filed a motion for a time extension. It asked the court to extend the deadline for its response to the SEC’s motion by two business days. Notably, Ripple wants the deadline to be extended to January 19 from January 17.
Ripple Using Delay Tactics
Reacting to Ripple’s request, Dizer Capital founder Yassin Mobarak declared, “Let the delay games begin.”
Let the delay games begin. This time from Ripple, which is smart in my opinion. Time is not on the SEC’s side. https://t.co/7eblbzrvY1
— Yassin Mobarak 🪝 (@Dizer_YM) January 12, 2024
The expert believes that Ripple’s time extension motion could be the company’s way of using delay tactics to ensure the legal tussle continues to linger.
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As a result, he emphasized that the SEC currently has limited time in the legal tussle. In a follow-up tweet, the expert said the Securities and Exchange Commission has about 6 – 9 months before the upcoming U.S. “election cycle reality inserts itself.”
He speculated that SEC chair Gary Gensler might no longer head the commission by next year after the election. Gensler’s removal could significantly impact the outcome of the SEC v. Ripple lawsuit, especially if he is replaced with a pro-crypto regulator. According to Mobarak, delays in the lawsuit would work in Ripple’s favor.
Time is of the essence for @SECGov . They have 6-9 months tops before the election cycle reality inserts itself. Most likely, Gensler will not be the SEC chair next year.
— Yassin Mobarak 🪝 (@Dizer_YM) January 11, 2024
Before now, the SEC was seen as the party using delay tactics to stall the resolution of the multi-year legal tussle. In the early stage of the lawsuit, the SEC filed several motions asking the court for a time extension.
However, Mobarak believes Ripple is now the party using delay tactics to extend the lawsuit into election season.
Meanwhile, the court has already released the scheduling order with respect to remedies. Per the order, the SEC will file the last motion in the remedies phase on April 29, 2024. As reported earlier, pro-XRP lawyer Fred Rispoli speculated that the court would issue its ruling in early summer.