In the protracted legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs, Inc. over the status of XRP, a recent development sees the SEC formally petitioning for an extension in the current schedule for remedies-related briefing. Directed to Judge Analisa Torres of the Southern District of New York, the request aims to adjust deadlines across various stages of the case, citing compelling reasons under Federal Rule of Civil Procedure 16(b)(4) for the proposed modifications.

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. Specifically, the SEC seeks an extension for its deadline to file the remedies-related opening brief, moving it from March 13 to March 22, 2024.

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

In the letter submitted by Jorge G. Tenreiro on behalf of the SEC, it’s 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 underscores the collaborative nature of managing the procedural intricacies of the case.

Justification for the Extension

The SEC justifies its request by referring to a recent dispute over the scope of discovery, which was resolved only by February 5, 2024. Ripple was directed on this day to share financial statements to assess if post-lawsuit institutional XRP sales breached securities laws.

Tenreiro emphasized the impact of this delay on the briefing schedule, stating, “Notwithstanding these efforts, a dispute between the parties as to the proper scope of discovery was not resolved until February 5, 2024.” He highlighted the unforeseen delay’s repercussions on the overall timeline.

Moreover, Tenreiro underscored the SEC’s diligence and the mutual agreement between the parties as factors supporting the extension request. He argued that the extra time allows for a thorough review of recently produced documents and the finalization of the briefing.

Clarification and Implications

The SEC’s letter clarifies that the imminent trial does not influence the request, given the absence of a pending trial in the remaining proceedings. This detail emphasizes the procedural nature of the extension request, separating it from any substantive delay in resolving the case itself.

In the XRP lawsuit, the “remedies” phase pertains 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, based on allegations of violating securities laws by selling $770 million worth of XRP.

As legal proceedings continue, the outcome remains uncertain, influencing the market sentiment surrounding XRP. At present, XRP is trading at $0.5795, awaiting further developments in the ongoing lawsuit. The extension request signifies the complexity of legal proceedings in cryptocurrency cases and highlights the importance of meticulous preparation. As stakeholders await further developments, the outcome of the XRP lawsuit holds implications for the broader regulatory landscape of the crypto industry.