United

Request

American fintech firm Ripple made the argument that the United States Securities and Exchange Commission (SEC) had “ample opportunity” to demand what material it deemed necessary and that their request to examine additional financial documents was invalid.
The SEC initially filed <a href="https://thecoinrise.com/ripple-clo-projects-the-end-to-sec-lawsuit-in-2024/" rel="noopener noreferrer nofollow">charges against Ripple in December 2020</a>, accusing the company of raising funds through the sale of unregistered securities through XRP.
The trial between Ripple and the SEC, which began in December 2020, is set to commence in April. In the midst of it, Ripple won a <a href="https://thecoinrise.com/sec-lawsuit-against-ripples-top-executives-has-been-dismissed/" rel="noopener noreferrer nofollow">partial victory over the SEC in July 2023</a>, until the judge ruled that Ripple’s XRP token does not qualify as a security when programmatic sales are made on crypto exchanges.&nbsp;
<h2 id="span-style-font-weight-400-ripple-lawyers-pushback-against-the-sec-span">Ripple Lawyers Pushback Against the SEC</h2>
On January 11, the SEC demanded that Ripple produce audited financial statements for the financial years 2022 and 2023.&nbsp;
However, the deadline for requesting material during the fact-finding phase ended in August 2021.
<h3 id="span-style-font-weight-400-disclosure-of-contracts-span">Disclosure of Contracts</h3>
The SEC <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.551082/gov.uscourts.nysd.551082.925.0.pdf" rel="noopener noreferrer nofollow">demanded</a> the disclosure of all contracts related to the sale or transfer of XRP to external entities made after the initial filing and the provision of additional details on the institutional sale proceeds from XRP.
Ripple’s legal team stated in a court filing on January 19 that the SEC had modified its position regarding gathering more data during the discovery phase, which calls for the exchange of pertinent documents between the parties as part of the legal procedure.
<h2 id="span-style-font-weight-400-ripple-lawyers-ask-court-not-to-be-misguided-span">Ripple Lawyers Ask Court Not to be Misguided</h2>
Meanwhile, Ripple’s legal team emphasized that the court should not be persuaded by the way the blockchain payments technology firm is portrayed by the US regulator.
“The Court should not go down the slippery slope the SEC is paving,” <a href="https://www.dropbox.com/scl/fi/79ud2r24jbxjom5gkgjma/Ripple-Response-to-SEC-Motion-to-Compel.pdf?rlkey=lvq0c6mq27yte2d4wmv2j2rrb&amp;dl=0" rel="noopener noreferrer nofollow">said</a> the lawyers, while adding:&nbsp;
“In fact, the parties already have litigated whether post-complaint discovery was proper and in the course of that discovery dispute, the SEC never argued that post-complaint discovery was relevant to remedies but instead took the position that post-complaint conduct was entirely irrelevant to the case.”
<h3 id="span-style-font-weight-400-sec-has-exhausted-all-of-its-interrogatories-span">SEC has Exhausted all of its Interrogatories</h3>
In addition, Ripple’s attorneys argued that the <a href="https://thecoinrise.com/ripple-labs-chair-slams-us-regulators-for-crypto-laws/" rel="noopener noreferrer nofollow">SEC had exhausted all of its interrogatories</a>, a list of written questions the SEC might ask Ripple to respond to prior to trial.
“As to the SEC’s interrogatory in particular, the SEC has used all of its interrogatories in the case and cannot unilaterally grant itself more.” was concluded by the filing.
The post <a href="https://thecoinrise.com/ripple-lawyers-claim-secs-request-for-financials-is-irrelevant/" rel="noopener noreferrer nofollow">Ripple Lawyers Claim SEC’s Request for Financials is Irrelevant</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Ripple Lawyers Claim SEC’s Request for Financials is Irrelevant

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