Looks like Ripple Labs is in a legal tangle. A New York judge has ordered them to spill the beans on certain financial stuff and details about selling XRP tokens to institutions. The request came from the U.S. Securities and Exchange Commission (SEC), as per court papers from Monday. Let’s take a look at this SEC vs Ripple news in more detail.
This request from the SEC came in early January. It’s all part of an ongoing lawsuit that accuses Ripple of selling XRP without following the rules in the U.S. Last July, Judge Analisa Torres made a big ruling, saying that only Ripple’s institutional sales of XRP broke U.S. law. This decision got a thumbs up from the crypto world, as it shed some light on how regulators view digital assets.
SEC vs Ripple: SEC Requests Ripple’s Financials and Contracts Amid Legal Battle
The SEC is on a mission to gather more ammo in their legal battle against Ripple. They argue that since they found Ripple liable for violations even before the lawsuit kicked off in 2020, they need these requested documents to help Judge Torres decide whether to slap Ripple with injunctions or civil penalties for everything that’s happened since then. And if penalties are on the cards, they want to figure out how much.
In a move signed off by Magistrate Judge Sarah Netburn on Monday, Ripple’s been told to hand over financial statements for 2022-2023 and all the contracts that have to do with institutional sales since the lawsuit started.
But Ripple’s not taking this lying down. In a filing on January 19, they pushed back against the SEC’s request, calling it untimely. They argue that the SEC hasn’t given good enough reasons for each of their requests and that asking for more info after fact discovery is wrapped up is just an unnecessary hassle. Ripple’s counsel is standing firm, saying the SEC’s fishing expedition for irrelevant info should be shut down. It’s like a legal tug-of-war, and both sides are digging in their heels.
What will be the impact of this on XRP price?
The ongoing dispute between Ripple and the SEC has brought about quite a stir inside the XRP network. There’s a sense of uncertainty lingering, mainly with the SEC’s request for extra facts from Ripple regarding their financials and sales.
It almost appears like we are spectators to a felony drama, and all and sundry is on the facet, thinking about how this could impact the price of XRP. Should Ripple fight to navigate those challenges or face additional setbacks, there’s an actual problem that could have a bad effect on XRP’s value. On the turn facet, if Ripple can address these problems efficaciously, it will be able to inject some much-wanted positivity into XRP’s trajectory. For XRP holders, it’s a nerve-wracking experience, and we are eagerly expecting the decision of this saga.