Ripple Lawyers Challenge SEC Request for Additional Financial Documents
Ripple lawyers have objected to the Securities and Exchange Commission’s (SEC) request to examine additional financial documents, stating that it is untimely and irrelevant. They argued that the SEC had ample opportunities to obtain the necessary documents before the deadline. In a recent filing, the Ripple team highlighted that the SEC changed its stance on collecting additional information during the trial’s discovery phase. However, the deadline for requesting material during this phase had already ended in August 2021.
SEC’s Reason for Requesting
The SEC’s request for post-complaint documents is motivated by the court’s decision on penalties for XRP sales to institutional investors. If Ripple is found to have violated securities laws after the court ruling, a more severe penalty could be imposed. Ripple argued that the SEC’s requests are irrelevant and have no bearing on the court’s remedies determination. They urged the court to not be influenced by the SEC’s portrayal of the company.
Ripple Lawyers Strongly Object
Ripple’s legal team emphasized that the SEC’s requests hold no merit and that the SEC has already exhausted all of its interrogatories in the case. They urged the court to reject the SEC’s attempt to obtain additional information and to ensure a fair proceeding for Ripple. The trial between the SEC and Ripple is scheduled to commence in April, following the regulator’s 2020 charges against Ripple for allegedly selling unregistered securities. In a partial victory for Ripple, the judge ruled in 2023 that XRP is not a security.
Hot Take: Ripple Lawyers Challenge SEC’s Untimely and Irrelevant Document Request
Ripple’s legal team has challenged the Securities and Exchange Commission’s (SEC) request for additional financial documents, arguing that the request is untimely and irrelevant to the upcoming trial. They highlighted that the SEC changed its stance on collecting additional information during the discovery phase, which had already ended. The SEC’s request is believed to be related to determining penalties for XRP sales. Ripple strongly objected to the request, asserting that it has no impact on the court’s remedies determination. The trial is set to begin in April, and Ripple’s legal team urges the court to reject the SEC’s attempt to obtain more information.
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