Ripple lawsuit: Ripple CEOs and Securities and Exchange Commission agree on timeline
While most coins are raking in incredible bull-run gains, most of Ripple’s XRP continues to revolve around the SEC lawsuit. Now, the CEOs‘ lawyer, James Filan, has tweeted a copy of a letter filed by the SEC with the Southern District of New York.
#SEC v. #Ripple #XRPCommunity @sentosumosaba Briefing schedule for motions to dismiss agreed upon and proposed by parties. pic.twitter.com/5LFMrjigCh
– James K. Filan (@FilanLaw) March 13, 2021
Filan represents former Ripple CEO Christian Larsen and current CEO Brad Garlinghouse in the lawsuit filed by the Securities and Exchange Commission (SEC). In the letter filed by the SEC, both sides tell the court that they have agreed to proposed dates for the Crypto presentation of arguments on the Cryptosoft defendants‘ motions to dismiss.
Specifically, they ask the Court to accept the following schedule. Defendants‘ opening briefs would be due on 12 April and the SEC’s on 14 May. The defence would have until 4 June to respond.
These dates relate only to the defendants‘ motion to dismiss. They are essentially opening rounds, but they give an idea of the time frame to expect. And it is not a short time frame.
Are there any shortcuts?
There is a possibility that the case can be settled out of court. In an interview in January, SEC Commissioner Hester Pierce indicated that the SEC usually settles these types of cases out of court.
However, there is no guarantee that Ripple and the SEC will settle out of court this time. Even if they do, the timing of the hearings for the first motion to dismiss indicates that it is unlikely to happen before the summer of 2021.
Ripple under fire
The SEC formally filed charges against the CEOs and Ripple itself in December 2020. The SEC accuses Ripple of taking over $1.3 billion by selling unregistered securities, namely Ripple’s XRP. Larsen and Garlinghouse are accused of raising another $600 million through the sale of Ripple’s XRP.
The SEC’s position is that Ripple’s XRP constitutes a security. Ripple Labs denied the allegations in January.
In its response, Ripple claims that XRP is priced similarly to other cryptocurrencies. Moreover, XRP was recognised as a digital currency by the state of New York and cleared by the Financial Crimes Enforcement Network (FinCEN) in 2015.
Since the SEC indictment was filed on 22 December, Ripple has suffered on several levels. Many exchanges in the US listed XRP.
Outside the US, exchanges have banned Americans from trading it. Corporate clients like Moneygram, who relied on Ripple’s XRP (to buy Ripple guide 2021) to conduct cross-border transactions, have stopped doing so for fear of regulation.
No matter how quickly the SEC and Ripple resolve the matter, much damage has already been done.