Recently, Ripple has contested the SEC’s request to obtain certain documents related to the case. This disagreement is a notable development in the prominent legal dispute between Ripple and the SEC, highlighting the intricate nature of adhering to regulations in the cryptocurrency industry.
Ripple’s opposition to SEC’s motion
Ripple submitted its response to the SEC’s motion, which was originally due on January 17 but given an extra two days, by the new deadline. In the filing, Ripple puts forward two main points to counter the SEC’s request for post-complaint discovery. These points discuss the timing and significance of the SEC’s demands in relation to the ongoing lawsuit.
XRP’s initial argument questions the SEC’s timing in requesting the documents. Ripple claims that the SEC had enough time to ask for these documents during the fact-discovery phase, which ended on August 31, 2021. The company highlights that the SEC’s failure to request this information earlier shows that there is no valid reason for seeking it at this point.
In addition, XRP highlights that there was previously a legal dispute regarding whether post-complaint discovery was relevant in the fact discovery phase, where the SEC supposedly considered these inquiries to be irrelevant. XRP asserts that it would be improper to allow the SEC to alter its position at this point.
Ripple’s second point challenges the importance of the information that the SEC is requesting. The company argues that the data requested after the complaint would not affect the court’s decision in the lawsuit’s remedies phase. Moreover, XRP highlights that the SEC has already used up all the questions it was allowed to ask in the case, suggesting that the commission cannot independently request more information beyond the agreed limits.
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Implications for the XRP-SEC legal battle
The opposition filed by Ripple The ongoing legal battle between Ripple and the SEC is at a critical point. The SEC has filed a motion that includes a request for Ripple’s audited financial statements from 2022 to 2023 and information about XRP sales to institutional investors since December 2020. This motion is part of the lawsuit’s remedies phase, which seeks to determine the potential penalties Ripple may incur for allegedly breaking securities laws through its XRP sales.
Ripple’s refusal to comply with the SEC’s request highlights the larger impact of the case on the cryptocurrency sector. The resolution of this legal dispute could establish a standard for the regulation and treatment of digital assets in accordance with U.S. securities legislation. Consequently, both XRP and the SEC are fiercely presenting their arguments in order to sway the ultimate ruling.
The ultimate determination will be made by U.S. District Magistrate Sarah Netburn, who has not yet announced a specific date for her decision. However, as the phase of gathering remedies-related evidence will wrap up on February 12, 2024, the ruling is anticipated to be delivered soon. This verdict will be a crucial turning point in the lawsuit and could have a notable influence on the regulations surrounding cryptocurrencies in the United States.
