A U.S. Judge Orders Ripple Labs to Hand Over Historical Financial Statements
A U.S. judge has ruled in favor of the Securities and Exchange Commission (SEC) in its ongoing legal battle with Ripple Labs. The judge, Sarah Netburn, has ordered Ripple to provide its historical financial statements from 2022-2023, as well as answer questions about its institutional sales proceeds.
Ripple Labs Argues Confidentiality of Financial Documents
Ripple Labs has argued that its financial documents are “highly confidential” and challenged the SEC’s request to release them. The fintech company has been embroiled in a lawsuit with the SEC since 2020, when it was accused of selling unregistered securities in the form of XRP.
A Partial Win for Ripple in Previous Court Ruling
Last year, Ripple won a partial victory when a judge ruled that programmatic sales of XRP to retail investors did not qualify as securities. However, the judge did determine that $728 million worth of contracts for institutional sales were unregistered securities.
Ripple CEO Criticizes SEC Chairman
Ripple CEO Brad Garlinghouse has been vocal in his criticism of the SEC and its chairman, Gary Gensler. Garlinghouse described the SEC as “very hostile” and called Gensler a “political liability.” He believes that the SEC’s approach to regulating the crypto industry is ineffective.
Hot Take: Ripple’s Legal Battle Continues
The legal battle between Ripple and the SEC continues to unfold, with this latest ruling requiring Ripple to hand over its historical financial statements. The outcome of this case could have significant implications for the broader crypto industry and how cryptocurrencies are classified by regulators. Meanwhile, Ripple’s CEO remains critical of the SEC’s approach, highlighting the ongoing tension between the crypto industry and regulatory authorities.
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