Cryptocurrency

Important Ripple v. SEC Lawsuit Development

TL;DR

• The SEC is seeking Ripple’s financial records for evidence in their legal case.
• The company has previously secured favorable court rulings, including a decision on the nature of some of its XRP sales.

The United States Securities and Exchange Commission (SEC) filed a new motion compelling Ripple to hand over essential documents such as the company’s financial statements for 2022 and 2023 and its post-complaint XRP sales contracts.

The regulator argued that those records could provide important information and show whether the firm has violated certain securities laws.

As CryptoPotato reported, the Commission filed the same motion earlier this month, and Ripple had until January 17 to react. 

The company first insisted the deadline for a response be prolonged to January 19 and later opposed the SEC’s wish, claiming the requests were untimely and unrelated to the case. 

“They are irrelevant: the information the SEC seeks has no bearing on the court’s remedies determination. The SEC apparently wishes to have the court substitute a summary determination as to whether Ripple’s post-complaint sales constitute investment contracts in place of a full proceeding on the merits to resolve that question,” Ripple maintained.

The latest clash comes less than three months before the grand trial between the two organizations. Ripple seemingly has the upper hand, securing three major (yet partial) wins last year.

The first one came in July when Federal Judge Analisa Torres determined that the company’s XRP sales to retail investors did not constitute an offer of investment contracts.

Shortly after, the US magistrates dismissed the SEC’s intention to appeal the decision, whereas CEO Brad Garlinghouse and Executive Chairman Chris Larsen were cleared of all accusations brought by the watchdog. 

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