The SEC v. Ripple lawsuit is fast approaching a critical date that could determine the appropriate penalty Ripple would pay for violating U.S. securities laws.
Prominent XRP lawyer James K. Filan called attention to the development in an X post today.
#XRPCommunity #SECGov v. #Ripple #XRP Below is the revised schedule for remedies briefing: (1) @SECGov’s opening brief is due on March 22, 2024, (2) @Ripple’s opposition brief is due on April 22, 2024, and (3) @SECGov’s reply brief is due May 6, 2024.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) March 14, 2024
SEC to File Remedies Opening Brief on March 22
Specifically, the SEC is expected to file its opening brief with respect to remedies by March 22. Recall that the opening brief was initially scheduled to be filed on March 13, 2024.
However, the court extended the deadline earlier this month based on the SEC’s request. With just eight days left before the brief is submitted in a New York federal court, lawyers for the commission are expected to tender relevant facts that could prompt the judge to impose a heavy penalty against Ripple.
The SEC previously noted that it needed the extension to review Ripple’s audited financial statements. Therefore, the SEC might cite some relevant portions of the financial statement in its opening brief.
Ripple Opposition and SEC Reply to Follow
After the SEC submits its opening brief, Ripple will file an opposition to it by April 22. The date was initially set for April 12 but was extended at the SEC’s request. In its remedies-related opposition brief, the leading crypto payments company is expected to counter the SEC’s claim in a bid to receive a lesser penalty.
Afterward, the SEC will file its reply by May 6, a date that was initially scheduled for April 29, 2024. This upcoming motion would address some arguments made by Ripple’s lawyers and emphasize why a massive penalty should be imposed against the company.
Upon completing the remedies briefing, the court will set a date for the verdict and issue the appropriate penalty for Ripple’s violation of securities laws via its institutional XRP sales.
Potential Fine
The monetary value of the XRP Ripple sold to institutional clients was $770 million. However, a prominent lawyer and U.S. Senatorial candidate, John Deaton, believes Ripple would not pay up to $200 million as a fine.
On the other hand, prominent crypto analyst Zach Rector speculates that the company could pay up to $3 billion if the court finds ODL-related XRP sales to be securities.