Ripple and SEC Agree to Seal Proposal in Ongoing Legal Dispute
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have reached an agreement to seal a proposal addressing concerns about an upcoming remedies-related brief in their ongoing legal battle. The proposal, submitted to the U.S. District Court for the Southern District of New York, aims to restrict public access to confidential information in the brief.
Ripple & SEC to Conceal Financial Statements from XRP Community
Former Federal Prosecutor James K. Filan revealed that the proposal was submitted before Judge Analisa Torres of the Southern District of New York, U.S. District Court.
- The joint sealing proposal seeks to govern sealing issues relating to the forthcoming remedies-related briefing in the case between Ripple, the SEC, and the XRP community.
- If approved by Judge Torres, important details such as Ripple’s financial statements and post-complaint XRP institutional sales will be concealed from public view.
- The parties have outlined a timeline for filing sealed and redacted versions of the brief and accompanying materials.
- The SEC is expected to file its opening remedies brief under seal on March 22, followed by a meeting on March 25 to discuss necessary redactions.
- A redacted version of the brief will be filed publicly on March 26.
- Ripple will file its opposition under seal on April 22, with a meeting on April 23 to discuss redactions. A redacted version of Ripple’s opposition brief will be filed publicly on April 24.
- The parties have proposed sealing replies to Ripple’s remedies opposition brief, with a meeting scheduled for May 7 and public filing of redacted versions on May 8.
- To simplify the sealing process, an omnibus motion has been suggested to seal all materials related to the remedies brief by May 13.
The proposed sealing schedule strikes a balance between transparency and protecting confidential information in the ongoing legal dispute between Ripple and the SEC.
Overview of SEC vs. Ripple Case: Will The Outcome Affect XRP?
The SEC filed a lawsuit against Ripple Labs on December 22, 2020, alleging that the company conducted a $1.3 billion unregistered securities offering. This litigation caused a significant decline in the price of Ripple’s token, XRP.
The release of the Hinman documents shed light on the SEC’s perspective on cryptocurrencies and its classification of securities. The documents provided relief and positive market sentiments for XRP price recovery.
In early 2023, Ripple’s Chief Legal Officer, Stuart Alderoty, expressed confidence in the company’s ability to win the ongoing lawsuit against the SEC. Alderoty highlighted the SEC’s recent track record of losses in Supreme Court cases.
There are several events that crypto communities believe could help Ripple win its legal battle against the SEC:
- The recent backlash faced by the SEC from the District Court of Utah and U.S. Republican lawmakers
- The controversial announcement of spot Bitcoin exchange-traded funds (ETFs) approval by the SEC
At present, XRP trades at $0.57, with a decline of 16.17% in the last seven days. Traders and asset holders are hopeful that the resolution of this two-year-long legal battle will positively impact the XRP price.
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