XRP Lawsuit: Court Sets Ground Rules as Suit Enters Settlement Phase

Godfrey Benjamin
November 10, 2023
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US SEC to Appeal XRP Secondary Sales In Ripple Lawsuit, Says Ex-SEC

Per an X post, top lawyer James K. Filan shared an update that crypto payment company Ripple Labs and the United States regulator SEC have submitted their schedules to Judge Analisa Torres, the presiding judge of the Southern District of New York regarding the next phase of the XRP lawsuit which involves remedies discovery and briefing.

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XRP Lawsuit: Permissible Discovery Terms Shared

According to the SEC’s letter to the federal judge which was dated November 9, both parties have decided that the permissible discovery in the settlement negotiation would encompass events that took place before the U.S. regulator filed the initial complaint against the crypto payment firm in connection to XRP. 

From there, the SEC is requesting a 90-day window from the point of entry of the scheduling order to enable it to conduct some discoveries that are related to remedies. Ripple, on the other hand, does not have any challenge with this proposal so long as it sticks to pre-complaint discovery. 

Precisely, it is limiting its consent to discoveries that are connected to only events that preceded the complaint from the SEC.
The document stated clearly that the fintech firm still retains the authorization to oppose any post-compliant discoveries that may be raised by the SEC. Eventually, Ripple may go as far as petitioning the court if it permits the SEC’s proposal and the extension of deadlines. 

Additionally, Ripple was given 45 days from the entry of the scheduling order to present a superseding report by Anthony M. Bracco, who testified earlier this year.

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SEC Granted Permission to Depose Witness

In the next 90 days after the scheduling order, the SEC gets to depose Bracco. Based on permission granted by the court, the U.S. regulator may decide to serve a rebuttal expert report or could choose to submit a declaration of a summary witness to rebut Bracco’s work. In the long run, if any of such reports show up, Ripple reserves the right to object to it, per the letter to Judge Torres.

It is worth noting that no third-party discovery requests will be honored without receiving approval from the court, as stated by the Federal Rules of Civil Procedure.

The schedule already points to a lengthy and bumpy road ahead, however, this aligns with prior projections from pro-XRP lawyer John Deaton who believes a lot of back and forth will ensue before a final settlement offering is reached. He believes a $20 million or lower settlement can be considered a 99.9% success story for Ripple Labs.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.