In a recent Twitter exchange, Ripple CTO David Schwartz pointed out a crucial deadline for the ruling in the ongoing Securities and Exchange Commission (SEC) lawsuit against Ripple Labs Inc. and its executives.
Schwartz noted that the lack of a decision thus far from Judge Torres is not unusual, adding that he "wouldn't think anything was wrong, unusual, or strange until at least the end of September."
This counters the prediction by Ripple CEO Brad Garlinghouse, who had anticipated a resolution in the first part of 2023. Yet, it is already July, with no ruling in sight.
Attorney John E Deaton took to Twitter to outline historical timelines of Judge Torres' rulings on similar cases, in a bid to reassure anxious XRP fans. According to Deaton, there are several cases that have taken Judge Torres seven months or longer to reach a decision. For instance, in the Thor Equities case, the waiting period has been equivalent. Even in the N.Y. District Carpenter’s fund case, it took Judge Torres over eight months to deliver a summary judgment ruling.Deaton's tweets seem to suggest that the extended wait is not out of the norm, considering the precedent set by Judge Torres' previous cases. Schwartz also chimed in, validating Deaton's explanation and hinting at the possibility of a late September verdict.
It's worth noting that if Judge Torres extends her decision beyond September 31, she would be stepping into an unprecedented territory. Deaton's research has revealed that none of the cases she presided over have extended beyond nine months from the filing of reply briefs.
This prolonged lawsuit, which accuses Ripple of offering unregistered securities, has had significant implications on the XRP cryptocurrency, triggering a substantial decrease in its price since the SEC initiated the action in December 2020.
XRP investors, as well as the broader cryptocurrency community, are anxiously awaiting the verdict which could potentially redefine how digital assets are classified and regulated.