U.S. Judge Orders Ripple Labs to Disclose Financial Statements
A judge in the United States has ruled that Ripple Labs must provide its historical financial statements to the Securities and Exchange Commission (SEC). The SEC has accused Ripple of conducting unregistered sales of its XRP cryptocurrency.
Ripple’s Court Filing
In response to the SEC’s request, Ripple had argued that its financial status was not relevant to the case. However, the court dismissed this argument and ordered Ripple to disclose its financial records for 2022-2023.
Details of the Ruling
The ruling also requires Ripple to reveal information about the proceeds from institutional sales of XRP. This is part of the process to determine whether a potential injunction is necessary and fair.
The Ongoing Conflict
The conflict between Ripple and the SEC dates back to 2020 when the regulator filed a lawsuit against the company. While Ripple won a partial victory last year, with a judge ruling that certain sales of XRP were not securities transactions, it was determined that institutional sales constituted unregistered securities sales.
Ripple CEO’s Criticism
Ripple CEO Brad Garlinghouse has publicly criticized the SEC and its chairman, Gary Gensler. He believes that Gensler’s regulatory approach towards the crypto sector is ineffective and has labeled him a “political liability.”
Hot Take: Ripple Ordered to Disclose Financial Statements in SEC Battle
A U.S. judge has ruled in favor of the SEC, ordering Ripple Labs to provide its historical financial statements as part of an ongoing legal battle. This ruling comes after Ripple challenged the SEC’s request last month. The conflict between Ripple and the SEC began in 2020, with the regulator accusing Ripple of unregistered securities sales. While Ripple won a partial victory in court, it was determined that institutional sales constituted unregistered securities sales. Ripple CEO Brad Garlinghouse has criticized the SEC and its chairman, Gary Gensler, for their regulatory approach. This ruling is a significant development in the Ripple-SEC conflict.
By
By
By