SEC Responds to Ripple’s Objections in XRP Lawsuit
In the ongoing XRP lawsuit between Ripple Labs Inc. and the US Securities and Exchange Commission (SEC), the SEC has submitted a detailed reply to Hon. Sarah Netburn, United States Magistrate Judge for the Southern District of New York. This submission, titled “Reply in Further Support of its Motion to Compel,” is significant as it escalates the SEC’s pursuit of comprehensive discovery from Ripple and could potentially change the dynamics of the case.
SEC Counters Ripple’s Objections
The SEC’s reply addresses Ripple’s objections to the SEC’s demands for audited financial statements, post-Complaint Institutional Sales contracts, and responses to an interrogatory related to pre-Complaint Institutional Sales. The SEC dismantles Ripple’s defense, arguing that the requested data is relevant and timely for the Court’s decision on remedies.
Importance of Timeliness and Procedural Validity
The SEC emphasizes the timeliness and procedural validity of its discovery requests. It cites court documents that demonstrate the evolving nature of the litigation and endorses extended discovery periods. The SEC argues that Ripple’s financial condition and post-complaint Institutional Sales contracts are relevant to determining penalties, invoking legal precedents to support its standpoint.
Understanding Ripple’s Future Intentions
The SEC highlights the strategic importance of Ripple’s post-Complaint Institutional Sales contracts in understanding its future intentions regarding XRP sales. These contracts are not just retrospective records but potential indicators of future compliance or non-compliance with court rulings.
SEC Targets Ripple’s Core Business
Lawyer Bill Morgan provides his perspective on the SEC’s strategic positioning, stating that ordering discovery of post-complaint contracts will not lead to a mini-trial of the status of post-contract sales. The SEC asserts that it does not need to determine the legality of these sales to obtain an injunction. Morgan suggests that Ripple can argue it intends to structure future XRP sales to avoid falling within the scope of summary judgment institutional sales.
Hot Take: SEC’s Reply Strengthens Case Against Ripple
The SEC’s detailed reply to Ripple’s objections in the XRP lawsuit demonstrates the regulatory body’s determination and strategic positioning. By countering Ripple’s defense and emphasizing the relevance of requested data, the SEC strengthens its case against Ripple. The focus on Ripple’s financial condition and post-complaint contracts highlights their importance in determining penalties and understanding Ripple’s future intentions. This development could significantly impact the outcome of the high-profile case, potentially reshaping the dynamics surrounding XRP and Ripple’s business operations.
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