News - SEC tightens its requirements against Ripple
The SEC demands more financial documents from Ripple. A new escalation in litigation. How does the company behind XRP respond?
The SEC is not letting up in its legal dispute with Ripple and is continuing its offensive. The authority has now filed a new motion to compel Ripple to turn over financial documents and details of XRP sales contracts. The SEC argues that these documents are crucial to determining appropriate penalties in the case. In addition, the SEC points out that Ripple's financial activities and sales contracts are relevant even after the trial.
Last July, the competent court of the Southern District of New York ruled in favor of Ripple. Judge Torres ruled that the company's XRP token was not a security. However, the SEC's insistence on the documents shows that the SEC is determined to thoroughly investigate and fight possible rule violations by Ripple. The SEC's most recent motion was filed with Judge Netburn.
Ripple has vehemently opposed the SEC's motion, questioning both the timing and relevance of the claims. The company accuses the SEC of seeking to initiate a new phase of the lawsuit, which it considers unfounded and unnecessary. Pro-XRP attorney Bill Morgan explained in a statement on X that the SEC needs to show the judge why the request will not result in a mini-trial. However, he also stressed that a lengthy court order could hurt Ripple's business.
The issue for the SEC in its reply due on 24 January is how can it persuade Judge Torres that if she orders the discovery that this will not happen 👇and that she will not be effectively deciding in a mini-trial the status of #Ripple post complaint sales in a summary manner… pic.twitter.com/ZTeokOz8Xe— bill morgan (@Belisarius2020) January 20, 2024
In the meantime, Ripple's XRP token was able to stop its downward trend for now during the correction of the general market. Ripple is now back above €0.47 cents. However, the token's success is only partially linked to the success of the Ripple Labs company.