TRENDING

Home » SEC vs Ripple: Regulatory Fight Escalates Over Financial Records

SEC vs Ripple: Regulatory Fight Escalates Over Financial Records

Regulatory Clash Continues: SEC Upholds Request for Ripple’s Audited Financial Statements,

by Alexander
0 comment

In the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC), the SEC affirms the procedural propriety and relevance of its demands for Ripple’s audited financial statements from the last two years. The SEC emphasized the significance of the solicited information in aiding its case, countering Ripple’s opposition.

Ripple’s Resistance and SEC’s Response

Last week, Ripple opposed the SEC’s request, deeming it untimely, irrelevant, and unjustifiable. Ripple argued that post-compliant discoveries were unnecessary, and revisiting this requirement could unnecessarily prolong the proceedings. In response, the SEC reiterated the procedural soundness of its discovery requests, emphasizing their relevance and necessity in light of recent developments in the case.

The SEC countered Ripple’s claim that the initial April 2021 scheduling order contemplated only one discovery period. The SEC clarified that subsequent developments necessitated further discovery, challenging Ripple’s interpretation. The financial regulator stressed the importance of Ripple’s financial statements in determining potential penalties, citing precedents that underscored a defendant’s wealth as a pertinent factor in calculating penalties aimed at deterring misconduct.

Contentions Regarding Institutional Sales Contracts

Additionally, the SEC dismissed Ripple’s assertions regarding its post-complaint Institutional Sales contracts as untenable. According to the regulator, Ripple recently produced similar documents related to “all of Ripple’s XRP sales contracts from 2020 to June 2023, including determining the identity of the counterparties to those contracts” for an ongoing legal dispute.

Ripple’s legal tussle with the SEC, spanning approximately four years, began with allegations of unregistered securities offerings through XRP sales in December 2020. While certain sales of XRP received a favorable ruling last year, classifying them outside securities offerings, Ripple and the SEC continue grappling with subsequent legal proceedings in their pursuit to conclude the case.

As the regulatory clash unfolds, the significance of financial records and ongoing discovery disputes shape the trajectory of Ripple’s protracted legal battle with the SEC.

Related Posts :

footer logo

@2023 – All Right Reserved.

Incubated bydesi crypto logo