As the SEC v. Ripple lawsuit edges close to filing the remedies-related briefs, we have highlighted some critical dates that you should look out for in the coming weeks.
Recall that the case saw a significant update this week that could extend the deadline for completing the remedies briefing by one week.
Next Important Dates to Look Out For
The Crypto Basic reported that the SEC filed a motion to modify the remedies scheduling order. Specifically, the commission asked the court to extend the deadline for filing its remedies-related opening brief by nine days to March 22, 2024, from the initial date of March 13.
According to the motion, the nine-day extension the SEC seeks will enable it to review Ripple’s freshly submitted financial records and also complete the remedies briefing.
Not leaving Ripple behind, it also asked the court to extend the deadline for the firm’s opposition to its remedies-related brief from April 12 to April 22, 2024.
Additionally, the commission requested that the time for filing its reply brief be extended to May 6, 2024, from the previous deadline of April 29, 2024.
It is worth mentioning that Ripple agreed to the request. However, there has yet to be an official update regarding whether or not the court has approved the request.
Should the court decide not to modify the requests, the next important dates to look out for in the lawsuit are March 22, April 22, and May 6, 2024. These dates relate to the filing of the remedies-related briefs.
The remedies briefing is a critical stage of the lawsuit as it determines the appropriate penalty the court will impose for Ripple’s breach of federal securities laws via selling $770 million worth of XRP to institutional clients.
Although the remedies briefing is expected to be extended by one week, some legal experts still expect the judge to issue a final verdict in summer 2024.
Potential Penalty
It is unclear what penalty the judge will impose for Ripple’s violation of securities laws. However, some experts like Attorney John Deaton speculated that the firm will not pay more than what it has spent in legal fees. Last year, Ripple CEO Brad Garlinghouse disclosed that the company has already spent over $150 million defending the case.
The SEC would likely demand more than the $770 million at issue. This is mainly because of the commission’s interest in Ripple’s post-complaint institutional sales.
Recall that Ripple agreed to produce its audited financial statement for the period of 2022 to 2023, post-complaint contracts relating to institutional sales, and information on the proceeds received from institutional sales since the lawsuit’s initiation in December 2020.
These documents would help the SEC convince the judge to impose a more significant fine following Ripple’s violation.
Meanwhile, famous crypto analyst Zach Rector speculates that Ripple might be liable for disgorgement payment of up to $3 billion should the court declare its post-complaint institutional sales to be securities.
