SEC Seeks Change To Remedies Briefing Deadlines

In the ongoing XRP lawsuit between the US Securities and Exchange Commission (SEC) and Ripple Labs, Inc., the SEC has formally requested a modification to the current schedule for remedies-related briefing. The request, directed to Judge Analisa Torres of the Southern District of New York, seeks a one-week extension across several deadlines, citing “good cause” under Federal Rule of Civil Procedure 16(b)(4) for the requested adjustments.

XRP Lawsuit: SEC Seeks Deadline Extension

The SEC’s petition, submitted on February 27, 2024, outlines a proposed delay in the deadlines for filing all parties’ briefs related to the remedies phase of the case. Specifically, the SEC has requested that its deadline for filing the remedies-related opening brief be moved from March 13 to March 22, 2024.

Consequently, Ripple’s deadline to file its opposition brief would shift from April 12 to April 22, 2024, and the deadline for the SEC to submit its reply brief would extend from April 29 to May 6, 2024.

#XRPCommunity #SECGov v. #Ripple #XRP @SECGov has requested a change to the remedies briefing deadlines, asking that: (1) the @SECGov’s opening brief deadline be extended to March 22, 2024, (2) @Ripple’s deadline to file its opposition brief be extended to April 22, 2024, and (3)… pic.twitter.com/ZvCixNdLMm

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) February 28, 2024

In the letter, Jorge G. Tenreiro, on behalf of the SEC, stated, “None of the parties has previously requested an extension of the remedies-related briefing schedule. Ripple consents to the SEC’s request.” This consensus between the parties underscores the collaborative aspect of navigating the procedural complexities of the case.

The SEC justified its request by referring to a recent dispute over discovery’s scope, resolved only by February 5, 2024. As Bitcoinist reported, Ripple was ordered on this day to share financial statements to assess if post-lawsuit institutional XRP sales breached securities laws.

The SEC argues that this delay necessitates a one-week extension of the remedies-related discovery period. “Notwithstanding these efforts, a dispute between the parties as to the proper scope of discovery was not resolved until February 5, 2024,” Tenreiro explained, emphasizing the unforeseen delay’s impact on the briefing schedule.

Moreover, Tenreiro highlighted the SEC’s diligence and the mutual agreement between the parties as key factors supporting the request for extension, arguing that it allows for a more thorough review of the recently produced documents and the finalization of the briefing.

“The SEC has been diligent in completing remedies-related discovery and briefing,” he noted, adding that “Ripple, who consents to the SEC’s request, would not be unfairly prejudiced by the SEC having nine additional days to file its opening brief.”

The SEC’s letter also clarifies that the trial’s imminence does not influence the request, given the absence of a pending trial in the remaining proceedings. This detail points to the procedural nature of the extension request, rather than any substantive delay in the resolution of the case itself.

In the XRP lawsuit, the “remedies” phase refers to potential actions or penalties imposed by the SEC as a consequence of alleged illegal activities by Ripple, particularly concerning the unregistered sale of XRP.

John Deaton, a pro-XRP lawyer, predicts that Ripple’s fine could be lower than its legal fees, potentially ranging from $10 million to $100 million. This stems from allegations that Ripple violated securities laws by selling $770 million worth of XRP.

At press time, XRP traded at $0.5795.

Featured image from Chainalysis, chart from TradingView.com