Ripplers May Have to Get in the SEC Waiting Line: XRP Case May not be Concluded until Late 2020
On the 18th of March, a scheduling order to decide about the fate of Ripple’s XRP has created a timeline that will probably see the ruling happen in early 2020 but definitely not in 2019.
The order by Oakland’s federal court is to decide whether XRP is to be classified as a security but also to determine if the production of the XRP token was a direct disregard by Ripple of United States Securities laws.
Timeline and Schedule of the Court’s Order
The duration of all the stipulated events in the order is expected to last for around a year. The timeline is as follows:
A published notice is expected to be executed by the complainants according to federal law, on or before the 20th of March. This notice is to specifically confirm a few things. Firstly that they are aware of the suit, have gone through it properly and also that it was filed with their permission.
It should state that they didn’t deliberately purchase XRP so they could be in their current position as complainants. Furthermore, the notice and details of the suit must be sure to not violate a few relevant parts of the Securities Litigation Reform Act which was passed specifically to avoid misuse and exploitation of cases like this.
Within 60 days, any of the complainants who wishes to do so, may apply to the court, asking to be selected as the lead. It is important to note here that this might be quite a tussle because there most likely will be substantial payment for the lead plaintiff, in the event that the ruling is in their favour.
After the process is ended and the lead has been selected by the Court, such a person would have to bring a new suit expected to substitute all the previous complaints filed by all the complainants in all the different suits targeted at Ripple. This would be done 45 days after the new lead has been chosen.
After another 45 days, the defendants are expected to reply the new complaint but more often than not, a motion to dismiss is filed instead of a formal response. If this happens, the complainant is given 30 days to come up with a response for the motion.
In this case, all the different suits are to be merged so that all motions and testimonials are taken by the same judge.
Expected Time of Ruling
It is generally difficult to state definitively when the court will rule at any of the steps (especially on the motion to dismiss) but it is expected that that stage will happen sometime inside of 2019.
This automatically means that before a final ruling is reached, this year would be over.
If things run very smoothly without a lot of time being spent, the ruling should be concluded in early 2020. However, if the process of the law is factored with the timeline from other cases, a ruling might not be reached until 2020.