The U.S. Securities and Exchange Commission (SEC) has escalated its legal stance against Ripple. The regulatory body filed a new request to compel Ripple to provide financial documents and details of XRP sales contracts made after the initial complaint.
The SEC’s latest request, submitted to Judge Sarah Netburn of the Southern District of New York, seeks for Ripple to deliver audited financial statements for the years 2022 and 2023.
Additionally, it requested all contracts related to XRP sales to non-employee parties since the initiation of the complaint. The regulatory entity argues that these documents are crucial to determine appropriate remedies in the case, asserting that Ripple’s financial activities and post-complaint sales contracts are relevant to assess potential violations and formulate effective solutions.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) January 24, 2024
Ripple responded vehemently, opposing the SEC’s request and questioning both the timing and relevance of the demands. The company argues that the SEC had ample opportunities during the discovery phase to request this information and accuses the SEC of attempting to introduce a new phase of litigation, deeming it unnecessary and unjustified.
Ripple Believes the Unfair Legal Pursuit by the SEC Will Adversely Culminate for Both Parties
This legal clash has led to a series of considerations and concerns from both sides. The SEC emphasizes the importance of the requested documents to fully understand the scope of the case.
On the other hand, Ripple argues that the information sought by the SEC, especially regarding recent sales and the company’s financial condition, does not directly impact the judicial decision-making process regarding remedies. Additionally, the firm expresses concerns that the SEC’s approach could unnecessarily prolong the legal process and lead to redundant re-litigation of the case, adversely affecting all parties involved.
The development of this legal dispute between the SEC and Ripple has significant implications not only for both parties but also for the cryptocurrency market as a whole. The company’s defense stance and the ultimate outcome of this case could set a crucial precedent in the regulation and scrutiny of crypto companies under U.S. securities laws. The community and the market are closely watching the resolution of this legal battle.