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The long running <a href="https://news.todayq.com/sec-vs-ripple-a-crucial-battle-crypto-industry/" target="_blank" rel="noopener noreferrer nofollow">legal battle</a> between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) resumes. In the latest development, the top financial watchdog filed a Motion to Compel Ripple Labs, Inc. The commission asked the defendants to produce specific documents related to its financial statements for the years 2022-2023 and post complaint contracts governing “Institutional Sales.”&nbsp;
It is important to note that, this motion follows the SEC’s prior findings that Ripple violated Section 5 of the Securities Act. It prompted the court to consider potential remedies such as injunctions and civil penalties. The SEC seeks insight into Ripple’s post complaint conduct which particularly focuses on XRP Institutional Sales contracts and their financial implications. SEC reignites XRP lawsuit 
As per the fillings, the <a href="https://news.todayq.com/us-sec-chair-genslers-game-changing-vote-for-bitcoin-etf-approval/" target="_blank" rel="noopener noreferrer nofollow">SEC pointed </a>out the importance of understanding Ripple’s actions between the filing of the complaint and the present to assess the likelihood of future compliance and determine appropriate relief. However, Ripple contends that its future sales of XRP should be exempt from registration or federal securities laws. It makes the requested information crucial for evaluating the plausibility of Ripple’s assurances of no upcoming violations.
In response to the SEC’s motion, Ripple has also filed a Motion for Extension of Time. The defendants seek an additional two days until January 19th to respond. Ripple asserts that the extra time is necessary to provide a comprehensive response to the SEC’s Motion to Compel.&nbsp;
Experts suggest that the cooperative approach of Ripple, consenting to the SEC’s request for an extension and the reply deadline on or before January 24, 2024, reflects an effort to facilitate a thorough and fair legal process. What’s up with XRP? 
Amidst the legal proceedings, Ripple’s native cryptocurrency, XRP, has shown signs of a recovery rally. However, the regulatory challenges from the SEC have diverted attention from community aspirations for an XRP exchange-traded fund (ETF). The ongoing legal battle between Ripple and the SEC remains a focal point in the cryptocurrency industry, with potential implications for the regulatory landscape surrounding digital assets.
XRP price is up by more than 3% in the last 7 days. It is trading at an average price of $0.59, at the press time. Its 24 hour trading volume is down by 25% to stand at $1.8 billion.
As the legal drama unfolds, industry participants closely watch for developments that could impact Ripple and contribute to shaping the regulatory dynamics surrounding cryptocurrencies, especially in the United States.
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SEC initiates Discovery Motion in XRP lawsuit, Ripple seeks extension

Todayq News

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