The legal showdown between Ripple Labs and the United States Securities and Exchange Commission (SEC) has entered a critical phase, with newly set briefing deadlines marking the next leg of the legal proceedings.
In a post on X on March 14, 2024, Attorney James K. Filan revealed the updated schedule, indicating that the SEC is expected to submit its opening remedies brief on March 22 while Ripple submits its opposition brief on April 22. The SEC is then expected to submit its reply brief by May 6, 2024.
This revised timeline highlights the gravity and intricacy of the legal confrontation as both sides navigate a series of deadline extensions. The SEC seeks punitive measures against Ripple Labs for allegedly conducting unlicensed securities sales of XRP to U.S. institutional investors. The Judge presiding on the case, Analisa Torres, could impose punitive penalties on Ripple if it should find the company in violation of Section 5 of the 1933 U.S. Securities Act following the complaint.
During the remedies-related discovery process, Ripple provided the Commission with post-complaint contracts governing XRP sales to institutional clients.
On the other hand, Ripple aims to leverage U.S. case law to avoid penalties for securities law violations and demonstrate that it did not engage in any breaches.
Meanwhile, the outcome of an investigation into ongoing conflicts of interest within the U.S. SEC holds implications for the lawsuit.
Empower Oversight (E.O.), a whistleblower and research organization, recently disclosed that its investigation into virtual asset conflict of interest is nearing conclusion. The organization initiated legal action against the SEC in 2021, alleging bias among SEC executives towards Ripple. The investigation is based on the claim that former SEC Director William Hinman received bribes from his former employer, Simpson Thacher while serving at the agency. The findings from the investigation could significantly impact the basis of the regulator’s argument.
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