Ripple and the SEC are now entering the “remedies” phase of the case, which specifically focuses on institutional sales. The upcoming deadline, set for February 20, marks a pivotal moment in this legal showdown. Ripple achieved a significant victory in July 2023, but the Court ruled that certain XRP institutional sales constituted investment contracts and should have been registered with the SEC.

In a recent development, Ripple requested a one-week extension for the deadline related to remedies-related discovery, pushing it from February 12 to February 20. This extension underscores the importance of the discovery phase, which may unearth fresh information or arguments that could sway the outcome. Notably, the SEC had previously served nine interrogatories and three RFPs on Ripple back in November.

Following discussions between the parties in December and January to narrow down the dispute, the SEC filed a motion on January 11 to compel discovery of various documents, including Ripple’s financial statements for 2022 and 2023, post-complaint contracts governing XRP sales to institutional buyers, hedge funds, and ODL customers, as well as the proceeds received by Ripple for delivering XRP after the complaint was filed, but under contracts entered into before. Judge Netburn granted the SEC’s motion in full on February 5.

In response, Ripple announced its intention to disclose available financial statements and respond to the SEC’s interrogatories regarding post-complaint proceeds from pre-complaint contracts by the initial discovery deadline of February 12, 2024. However, Ripple sought a brief extension until February 20 to produce contracts for the sale of XRP to institutional buyers, hedge funds, and ODL customers over a rough three-year period preceding the complaint. This request was made due to the logistical challenges associated with gathering and producing these documents within the previous timeframe. Notably, Ripple did not seek changes to any other deadlines in the case, which remain unchanged.

Looking ahead, legal briefs are expected to be submitted in March and April, after which the Court will determine the appropriate remedies to be imposed.