The US Securities and Exchange Commission (SEC) and Ripple, on November 9, filed their joint briefing schedule for remedies discovery and briefing, which could signify that both parties are close to settling.
Ripple Vs SEC: Highlights From The Letter Sent To The Court
In the letter addressed to Judge Analisa Torres, the SEC, on behalf of both parties, mentioned that they had agreed to a “permissible discovery,” which will include facts about what went on in the crypto company before the SEC filed its complaint. In this instance, it is believed that this will help the SEC ascertain which of the company’s transactions violated securities laws.
The SEC also plans to seek discovery into some events that might have transpired after it filed its complaint. This will include transactions that the Commission considers “relevant to its claims for injunctive and monetary remedies.”
However, the regulator noted that Ripple will have the right to oppose such discovery, of which it will now be left to the court to decide whether or not any of the discovery opposed is permissible.
Ripple will also have the right to seek discovery with respect to any expert or witness that the SEC is likely to call on to prove its case. Meanwhile, the SEC is expected to file its brief with respect to remedies at any time but not later than 30 days after the remedies discovery period.
After that, Ripple will have 30 days to file its opposition brief, and the SEC will have 15 days to file its reply to Ripple’s brief.
The Remedy Phase Isn’t Going To Be Straightforward
As pro-XRP legal expert John Deaton had earlier noted, this phase is going to be like a second case, which could also take a while. It will involve lots of depositions, interrogatories, requests, production of documents, and other relevant materials that both parties consider necessary to aid their case.
On the one hand, the SEC will be looking to get Ripple to cough up millions of dollars as a fine for its violation of securities laws, with the Commission allegedly demanding $770 million. On the other hand, Ripple will be looking to reduce this penalty sum to as low as possible, with the sum of $20 million being mentioned as a big win for Ripple.
However, the case could potentially be cut short if both parties are able to agree on an out-of-court settlement. Some have chosen to be optimistic that that could happen, especially following the most recent filing. pro-XRP legal expert Fred Rispoli stated that he believes that the case is “closer to resolution” than the SEC is letting on.