While attorney Jeremy Hogan recently hoped Ripple could seek a settlement agreement against the US Securities and Exchange Commission (SEC), this speculation was rejected a few hours ago.
As a document published on CourtListener shows, there will probably be no deal until mid-August. The SEC and Ripple submitted a joint document to Federal Judge Analisa Torres of the US District Court for the Southern District of New York stating that there is no possibility of a compromise at this stage.
It was also stated in the document that so far the reconciliation talks have only been conducted with the “former administration” and “mainly” department manager (Jay Clayton). The SEC is currently in a transitional period after former President Jay Clayton left the regulator on December 23, 2020, and SEC Presidential candidate Gary Gensler is still waiting for his inaugural date. Accordingly, the parties stressed that officials representing the SEC during the talks are no longer in charge.
However, as the document reveals, Brad Garlinghouse and Chris Larsen (“Individual Defendants”) informed the SEC in a letter dated January 27, 2021 that they are requesting the dismissal of the claims against Individual Defendants. In response, the SEC will issue the First Amended Complaint within 21 days of Ripple’s response, until February 19, 2021, to try to narrow disagreements over the adequacy of the claims.
“Individual Defendants intend to review the SEC’s First Amended Complaint and decide whether to file a dismissal action based on the allegations contained herein.”
In addition, the document shows that both sides agreed August 16, 2021, as the deadline for the discovery phase, where they will gather evidence and argument. However, from now on, the SEC and Ripple Labs will keep open for a period of 120 days after the court’s decision to file an additional petition. In other words, if time is found insufficient, additional time will be given to the parties.
Finally, a pre-trial conference is planned on February 22nd.