The SEC and Ripple have submitted a joint proposal for the next lawsuit phase, with pro-XRP lawyers reacting to the development.
The United States Securities and Exchange Commission (SEC) and Ripple Labs have jointly submitted a letter to Judge Analisa Torres, proposing a schedule for the remedies briefing and discovery in their ongoing legal tussle.
The proposal indicates the timeline for the discovery phase of the remedies. According to the letter shared by seasoned legal expert James K. Filan, the parties agreed that the discovery would include facts that took place before the SEC charged Ripple with violating securities law.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) November 9, 2023
Proposed Schedule for Upcoming Remedies Stage
Notably, the SEC proposed a schedule of 90 days from the court’s entry of a scheduling order to conduct the remedies-related discovery. The SEC also seeks facts relating to events that occurred after it officially charged Ripple in December 2020.
Ripple reserves the right to file opposition to the SEC’s post-complaint discoveries and may request an extension of the discovery deadline.
Furthermore, the parties agreed that Ripple should be given 45 days from the court’s entry of a scheduling order to serve a superseding report by Anthony Bracco. For clarity, Bracco, as of last year, testified about the remedies stage of the case.
After Ripple offers the superseding report by Bracco, the SEC may depose the expert within 90 days from the entry of the scheduling order.
Accordingly, the SEC and Ripple reserve the right to issue rebuttal reports regarding the expert’s deposition. In addition, the parties will only serve third-party discovery following the court’s approval.
“The SEC may file its brief with respect to remedies at any time, but no later than 30 days after the remedies discovery period. Ripple shall file its opposition 30 days thereafter, and the SEC [can file] its reply 15 days thereafter,” the letter read.
Top Legal Experts React
The recent update in the Ripple case attracted the attention of pro-XRP lawyers. Reacting, Attorney Fred Rispoli said the tone of the letter suggests that the case is close to a resolution.
This is all tea leaf reading, but to me this letter does not have the acerbic tone of most of the previous ones. The parties even agreed on some things! I continue to believe this case is closer to resolution than SEC is projecting.
— Fred Rispoli (@freddyriz) November 9, 2023
Additionally, Attorney Jeremy Hogan, highlighted an interesting aspect of the legal tussle. Per Hogan, nothing is at stake other than the sovereign rights of other countries where Ripple also sold XRP to institutional clients.
The lawyer suggested that these countries could file amicus briefs in the lawsuit if the SEC decides to expand its jurisdiction.
And if the SEC tries to extend its reach outside of the U.S., will the U.K., France and Australia file Amicus Briefs like they did in the Morrison case?
That would be embarrassing.
And if so, will Australia hire @Belisarius2020 to represent it?
— Jeremy Hogan (@attorneyjeremy1) November 9, 2023
Furthermore, Australia-based pro-XRP lawyer Bill Morgan predicted how long the remedies stage of the Ripple lawsuit could take, given the recently submitted joint scheduling order. Attorney Morgan speculated that the scheduling shows the remedies stage could linger until May 2024, a month after Bitcoin Halving.
That scheduling takes us at least until May 2024 after the next Bitcoin halving and the start of the expected bull market. We can still talk about it as an ongoing case at the @wave_of_innov XRP Gold Coast conference in March next year if there is no settlement. https://t.co/61YsAZgyTc
— bill morgan (@Belisarius2020) November 9, 2023
It is worth mentioning that the proposed scheduling order relates to the upcoming remedies phase of the lawsuit. The proceeding will determine the appropriate fine Ripple may face for violating securities law through its past institutional sales of XRP, worth $770 million.
While the SEC seeks the entire $770M as penalties, Ripple could attempt to reduce the amount. Top legal experts, including Attorney John Deaton, believe that the blockchain company will try to exempt its legitimate business expenses and institutional-related XRP sales that took place outside the United States.