XRP Lawsuit: SEC Requests Extension for Deadlines
The ongoing XRP lawsuit between the US Securities and Exchange Commission (SEC) and Ripple Labs, Inc. has taken a new turn as the SEC has formally requested an extension for the current schedule of remedies-related briefing. The SEC has submitted a petition to Judge Analisa Torres of the Southern District of New York, seeking a one-week extension across several deadlines. The request cites “good cause” under Federal Rule of Civil Procedure 16(b)(4) as the reason for the adjustments.
SEC’s Request for Deadline Extension
The SEC’s petition, filed on February 27, 2024, outlines a proposed delay in the deadlines for filing all parties’ briefs related to the remedies phase of the case. The SEC specifically requests that its deadline for filing the remedies-related opening brief be moved from March 13 to March 22, 2024.
As a result, Ripple’s deadline to file its opposition brief would shift from April 12 to April 22, 2024, and the SEC’s deadline to submit its reply brief would extend from April 29 to May 6, 2024.
Reasoning Behind the Request
In its letter to Judge Analisa Torres, Jorge G. Tenreiro, on behalf of the SEC, explains that none of the parties involved in the case had previously requested an extension of the remedies-related briefing schedule. Ripple consents to the SEC’s request, highlighting their collaborative approach in navigating the procedural complexities of the case.
The SEC justifies its request by referring to a recent dispute over discovery’s scope that was only resolved on February 5, 2024. This dispute involved Ripple being ordered to share financial statements to determine if post-lawsuit institutional XRP sales violated securities laws.
The SEC argues that this delay necessitates a one-week extension of the remedies-related discovery period. Tenreiro emphasizes the impact of the unforeseen delay on the briefing schedule and highlights the SEC’s diligence and mutual agreement between the parties as factors supporting the request for an extension.
Procedural Nature of the Extension Request
The SEC’s letter clarifies that the imminence of the trial does not influence the request, as there is no pending trial in the remaining proceedings. This indicates that the extension request is procedural in nature and does not indicate a substantive delay in resolving 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, ranging from $10 million to $100 million. This prediction is based on allegations that Ripple violated securities laws by selling $770 million worth of XRP.
As of now, XRP is trading at $0.5795.
Hot Take: SEC’s Request for Extension Reflects Ongoing Collaborative Efforts
In the ongoing XRP lawsuit between the SEC and Ripple, it is evident that both parties are working together to navigate the complexities of the case. The SEC’s request for an extension demonstrates their diligence in completing remedies-related discovery and briefing. By extending the deadlines, there will be more time for a thorough review of recently produced documents and finalization of briefs. This collaborative approach indicates a commitment to fairness and due process in resolving this high-profile case.
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