SEC Requests Extension in XRP Lawsuit Remedies Schedule

In the ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs, Inc. regarding the status of XRP, the SEC has formally petitioned for an extension in the current schedule for remedies-related briefing. 

This 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.

Extension request overview

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.

The SEC justified its request by referring to a recent dispute over the scope of discovery, which was resolved only by February 5, 2024. According to the SEC, this delay necessitates a one-week extension of the remedies-related discovery period, impacting the subsequent briefing schedule.

Consensus and collaboration

Notably, Jorge G. Tenreiro, on behalf of the SEC, stated in the letter that “None of the parties has previously requested an extension of the remedies-related briefing schedule. Ripple consents to the SEC’s request,” highlighting a consensus between the parties despite the adversarial nature of the litigation.

Tenreiro emphasized the SEC’s diligence and the mutual agreement between the parties as key factors supporting the request for an extension. He argued that it allows for a more thorough review of the recently produced documents and the finalization of the briefing without unfairly prejudicing Ripple.

Procedural nature of the request

The SEC’s letter also clarifies that the imminent trial does not influence the request, as there is no pending trial in the remaining proceedings. This detail points to the procedural nature of the extension request rather than any substantive delay in the case resolution itself.

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

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

Market update

At press time, XRP traded at $0.5795, indicating ongoing market fluctuations amidst the cryptocurrency’s legal uncertainties.