Ripple and the SEC have proposed a detailed schedule for the next phase of their legal battle
A proposed schedule for remedies discovery and briefing has been submitted by Ripple and the Securities and Exchange Commission (SEC) to Hon. Analisa Torres, the presiding judge of the Southern District of New York.
The proposal outlines a structured timeline for the discovery phase, during which both parties will collect and present evidence pertinent to the SEC’s allegations and Ripple’s defense.
Chart course for discovery phase
The parties have agreed that permissible discovery will include events that occurred before the SEC’s initial complaint against Ripple.
According to the most recent filing, the SEC is to be allowed 90 days from the entry of the scheduling order to conduct discovery related to remedies.
Ripple limits its consent to discoveries that pertain to events preceding the complaint.
The document also notes that Ripple retains the right to oppose any post-complaint discovery that the SEC may request and may petition the court for deadline extensions if necessary.
Furthermore, Ripple has been granted 45 days from the entry of the scheduling order to present a superseding report by Anthony M. Bracco, who offered his testimony earlier this year.
The SEC, in turn, will have the opportunity to depose Bracco within 90 days following the scheduling order.
Both parties have reserved the right to serve rebuttal reports and seek further discovery as permitted by the court.
Third-party discovery requests will not be initiated without court approval, as stipulated by the Federal Rules of Civil Procedure.
Potential fines and recent developments
In related news, legal expert Jeremy Hogan has suggested that Ripple may significantly reduce a potential $770 million fine imposed by the SEC.
By focusing on the net profits from XRP sales rather than the gross amount, Ripple can deduct business expenses, potentially decreasing the penalty.
Hogan also highlighted the importance of the nexus of sales to the U.S., which could further limit the SEC’s jurisdictional reach.
This comes after Ripple’s notable legal wins earlier this year. The court ruled that the company did not violate federal securities laws by selling XRP on public exchanges. The SEC has also dismissed its charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.