The SEC motioned with the federal court that Ripple produce certain documents. The application was filed on January 10 in the U.S District Court for the Southern District of New York and is seeking to obtain XRP’s financial statements from 2023, purchasing agreements relating to institutional sales of transactions. SEC requests Ripple financial documents for an ongoing legal battle. XRP’s status as a security is at stake.
Background on the SEC’s Request
The SEC’s motion aims at obtaining vital information to assist Judge Sarah Netburn in making findings concerning the issues of this case. This involves analyzing whether Ripple should have injunctions and civil penalties imposed upon it, and if so, how much. The SEC deemed this request for financial statements important to fashion a penalty that would deter future violations.
In addition, the SEC requires details of post-complaint contracts concerning institutional sales for XRP. This request originates from a July 2023 ruling where Judge Analisa Torres established that XRP qualified as security when bought by institutional investors.
Ripple’s Response and Trial Schedule
Ripple has requested a two-day addition, wishing to file its response by January 19th rather than the original deadline of January 17 2024. The trial is expected in April for Ripple’s long legal battle with the US Securities and Exchange Commission (SEC).
This prolonged legal battle can be traced back to December 2020, when the SEC sued Ripple’s CEO, Brad Garlinghouse, and its executive chairman, Chris Larsen. Although the SEC dismissed its case against Garlinghouse and Larsen in October, it has begun a legal suit.
Suggestions will be made to the cryptocurrency industry after this case, as it reveals whether XRP is a security under American law. Such pressures from the SEC aim to make Ripple produce a series of these financial records, as it is still guided by its obligation to ensure that securities regulations survive amid ‘the new dawn’ associated with crypto industry evolution.
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