The Securities and Exchange Commission (SEC) has requested a one-week extension for each deadline related to filing briefs on the possible remedies in its lawsuit against Ripple Labs, Inc. The SEC claims that the recent resolution of a discovery dispute has affected its ability and timeline to prepare the briefs on schedule. Ripple Labs has agreed to the extension request, but the court has not yet ruled on it.

Discovery Dispute Resolved

The SEC and Ripple Labs have been engaged in a legal battle since December 2020, when the SEC filed a complaint alleging that Ripple Labs and its executives had sold over $1.3 billion worth of XRP, the native cryptocurrency of the Ripple network, as unregistered securities. Ripple Labs has denied the allegations and argued that XRP is not a security but a digital asset that facilitates cross-border payments.

The lawsuit has involved several disputes over the scope and relevance of discovery and the process of exchanging information and evidence between the parties. One of the main issues was whether the SEC had to produce documents related to its views and communications on Bitcoin and Ethereum, two other cryptocurrencies that the SEC has publicly stated are not securities. Ripple Labs claimed that these documents were relevant to showing that the SEC had treated XRP unfairly and inconsistently compared to other similar digital assets.

The court had ordered the SEC to produce the documents, but the SEC had resisted, arguing that they were privileged, irrelevant, or burdensome. On February 15th, 2024, the court held a telephonic conference to resolve the dispute and ordered the SEC to comply with its previous orders and produce the documents by February 22nd, 2024.

Extension Requested

According to former US federal prosecutor James K. Filan, who has been closely following the case, the SEC has asked Judge Analisa Torres of the Southern District of New York to grant a one-week extension for each deadline related to filing briefs on the potential remedies in the case. The SEC has requested that:

• The SEC’s opening brief deadline will be extended from March 13th to March 22nd, 2024
• Ripple Labs’ deadline to file its opposition brief will be extended from April 12th to April 22nd, 2024
• The SEC’s deadline to file its reply brief will be extended from April 29th to May 6th, 2024

The SEC has cited “good cause” under Federal Rule of Civil Procedure 16(b)(4) for the extension request, claiming that the recent resolution of the discovery dispute has impacted its ability and timeline to prepare the briefs on schedule. The SEC has stated that it needs more time to review the documents produced by Ripple Labs and to incorporate them into its arguments. Ripple Labs has reportedly consented to the extension request, but the court has not yet ruled on it. If granted, the extension will shift the timeline for submitting briefs related to the possible remedies in the case, such as injunctions, disgorgement, civil penalties, or rescission.

Jury Trial Scheduled

The lawsuit is scheduled for a jury trial beginning on April 23rd, 2024, unless the parties reach a settlement before then. The outcome of the case could have significant implications for the future of XRP and the cryptocurrency industry as a whole. XRP is currently the seventh-largest cryptocurrency by market capitalization, with a value of over $25 billion. The SEC’s lawsuit has caused several exchanges and platforms to suspend or delist XRP trading, affecting its liquidity and price. Ripple Labs has maintained that it will continue to operate and innovate in the global payments space, regardless of the lawsuit.