Ripple and the US Securities and Exchange Commission (SEC) lawyers did not see many opportunities for a pre-trial settlement of the lawsuit in the case of the alleged securities infractions, reported the Coindesk.

The parties submitted the plan and procedure for the consideration of claims to the Court of the Southern District of New York. The lawyers clarified that the negotiations took place under the Trump administration and were mainly conducted with division directors who have since left the SEC. The new head of SEC, Gary Gensler, took office on January 18.

“The parties will promptly notify the Court if any settlement in principle is reached as to any Defendant,” the discovery letter says.

The letter also sets out guidelines for the exchange of evidence in advance of the scheduled hearing.

The SEC added that it is trying to push for a ten-reading limit extension. Of interest to the department are notifications allegedly sent to Ripple and co-founder Chris Larsen with warnings that the XRP token can be considered a security. “Ripple and Larsen received two legal memos warning them that there was some risk that XRP would be considered ‘investment contracts’ and therefore securities under the federal securities laws.”

Ripple has refused to comply saying the documents fall under attorney-client privilege and that the SEC’s request is “improper and lacks legal foundation.” The regulator’s attorneys admitted that they would seek the disclosure of relevant information through the courts.

In late December, the SEC filed a lawsuit against Ripple, accusing it of selling unregistered securities in the form of XRP. The head of the company, Brad Garlinghouse, announced his readiness to cooperate with the new leadership of the department to resolve legal uncertainty.

Preliminary hearings in the case are scheduled for February 22, 2021.