Court Orders SEC and Ripple To Agree On Schedule

March 25, 2022 12:06 pm

The SEC and Ripple have been observed throughout the long-standing lawsuit to never agree on many different points and the schedule of the briefing is no exception.

With that in mind,  New York Southern District Court has still attempted to try to resolve this by ordering the SEC and Ripple to come to an agreement on the briefing schedule for the recent motions.

As part of this order, both parties are required to submit a joint proposal that will either be approved or rejected by the court which seems to be a highly difficult task.

Ripple wants to speed up the process and has been pushing to move on with the lawsuit process while the SEC has been criticized by the XRP community for employing delay tactics.

FinanceFeeds reports:

“The parties are directed to meet and confer as to a briefing schedule for summary judgment motions. The parties shall submit a joint proposed schedule for the Court’s approval no later than one week after the SEC’s submission”, Magistrate Sarah Netburn ordered.

The abovementioned “SEC’s submission” refers to the plaintiff’s request to inform the court of its position on whether any additional discovery is required.

The motion must be submitted within a week of the filing of the Individual Defendants’ upcoming answer, which is due April 8, 2022.

This places the SEC’s position on additional discovery to be filed as late as April 15, 2022, and the Joint Proposed Scheduling Order to be filed on April 22, 2022.

Currently, the current summary judgement that is on everyone’s mind right now is the the fourth affirmative defense which is commonly known as the Fair Notice Defense.

This focuses on whether or not Ripple was given fair notice before they were being investigated for supposedly dealing with securities if XRP is deemed to be considered a security.

In recent news, the SEC had failed to strike that defense so far which has been largely positive for turning the case towards Ripple’s favor so far.

The court has also laid out its terms so far in the conditions that would need to be satisfied in order for it to fully side with Ripple on the fair notice issue.

FinanceFeeds shares details on these conditions:

In addition, Magistrate Torres pointed out what critical factors may weigh in a future summary judgment on the Fair Notice defense: if XRP was or not sold as an investment and if Ripple has or not any relationship with the vast majority of XRP holders.

Ripple denies both claims and, according to the court, it can make all the difference in terms of fair notice.

“If true, would raise legal questions as to whether Ripple had fair notice that the term “investment contract” covered its distribution of XRP, and the court may need to consider these questions more deeply.”

Jeremy Hogan then reminded that most XRP holders have no connection to Ripple and many haven’t even heard of the company when they bought the digital asset.

Investors are expecting that there will be no joint alignment between the two parties and that the decision will ultimately end up going back to the court for a final decision.

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