Crypto Lawyer Raises Concerns Over “Unusual Quiet” in Ripple vs SEC Lawsuit

News | January 11, 2024 By:

Prominent legal expert Fred Rispoli has expressed concerns about the unusual lack of activity surrounding the ongoing lawsuit between the US Securities and Exchange Commission (SEC) and Ripple Labs.

In a series of tweets on Monday, Rispoli noted that both parties have been largely quiet since a New York court issued a scheduling order for the remedies phase of the case in November. With the remedies briefing deadline of February 12th fast approaching, Rispoli said he was surprised the SEC has yet to file any discovery motions, especially given the hostile nature of the litigation so far. However, he predicted motions will likely surface within a week of the deadline.

Rispoli went on to speculate on two potential outcomes as the case moves forward. Firstly, he suggested that if the SEC is able to obtain the discovery it seeks, it could lead to a settlement being reached between the two sides. Alternatively, if no settlement is reached, Rispoli expects the legal battle to be prolonged through the damages briefing phase, with a final ruling from the court potentially coming in early summer.

Other industry observers such as lawyer Jeremy Hogan shared Rispoli’s concerns about the uncharacteristic quiet period. In response, Rispoli expressed hope that the SEC might recognize the challenges it faces and consider focusing efforts elsewhere. However, he acknowledged comments from others that the SEC may try to deliberately drag the process out for as long as possible since it has little to lose.

The lawsuit entered its remedies discovery phase in July after a judge’s ruling that XRP is not a security in and of itself. Upcoming important deadlines include the February 12th remedies briefing, March 13th SEC remedies brief, April 12th Ripple opposition brief, and final SEC response deadline of April 29th. With these deadlines fast approaching and no new activity from either party yet, the ongoing silence in the high-profile case continues to raise questions from legal experts.