Prominent legal expert Fred Rispoli has raised concerns over the unusual quietness surrounding the ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple Labs, offering insights into potential outcomes.
Parties “Too Quiet”
Rispoli’s analysis, shared on Monday through the X platform, has triggered concern within the XRP community. This silence by parties has been particularly striking since a New York Court issued the scheduling order for the remedies phase of the lawsuit in November 2023.
Expressing his surprise, Rispoli remarked on the absence of any SEC discovery motions despite February 12, 2024, the date set for remedies briefing, fast approaching.
“SEC vs Ripple has been quiet…too quiet? I’m surprised we haven’t seen any SEC discovery motions filed, given how hostile this litigation has been,” he stated. He, however, noted he expects such motions will surface at least a week before the impending February 12 deadline.
Rispoli went on to speculate on two potential outcomes. Firstly, he suggested the possibility of the SEC obtaining the discovery it seeks, leading to a settlement between the parties. However, if that scenario doesn’t unfold, Rispoli anticipates a prolonged legal battle extending through the damages briefing, concluding on April 29, 2024, with a likely ruling in early summer.
Responding to Rispoli’s tweets, some members, including pro-Ripple lawyer Jeremy Hogan, also expressed nervousness about the quiet period. Fred Rispoli responded, hoping that the SEC might recognize the challenges it faces with Ripple and consider moving on to other legal endeavours.
One Blake Drip suggested that the SEC’s intention might be “to drag the process as long as they can”, given that it has almost nothing to lose. Rispoli acknowledged this possibility, adding that the “SEC’s primary focus is on financial gains”.
“One thing we can all confidently say about Jay/Gary’s SEC is that it loves money. Specifically taking money from other people and businesses. And in this part of the case–damages–dragging it out means less money for the SEC,” added Rispoli.
Ripple was handed a pivotal victory in July as a judge ruled that XRP was not in and of itself a security, opening the next key step in the case, which is a remedies discovery process. That said, it is important to note important dates for the lawsuit as outlined by the court last November.
Notably, on February 12, 2024, a remedies briefing is scheduled, setting the stage for the SEC to file its anticipated remedies brief on March 13, 2024. Subsequently, on April 12, 2024, Ripple is slated to submit its opposition. The SEC, in turn, has until April 29, 2024, to respond to any opposition raised by Ripple.