The legal battle between the Securities and Exchange Commission (SEC) and Ripple took an unforeseen turn as the regulator, in an unexpected move, sought an order compelling Ripple to disclose its financial statements for the years 2022-2023. The request, made yesterday, adds a new layer of complexity to an already intricate case.
Following the July 13 ruling, which determined that XRP itself is not a security but certain Ripple sales made under written contracts qualify as securities, both parties had agreed on a joint briefing schedule for remedies. The court had set a deadline of Feb. 12, 2024, for the completion of remedies-related discovery.
What’s new?
In a recent development, the SEC filed a motion seeking to compel Ripple to disclose the amount of XRP institutional sales proceeds it received after the filing of the complaint for contracts entered into precomplaint. The regulator accuses Ripple of persistently selling XRP as unregistered securities while accumulating billions of dollars.
In the SEC’s words, Ripple appears undeterred, asserting its intention to continue selling XRP to “institutional sales” buyers in ODL transactions. Ripple argues that it can structure future sales in compliance with federal securities laws, challenging the necessity for an injunction, the regulator claims in its motion.
In response to the SEC’s demands, Ripple filed a Motion for Extension of Time, requesting an additional two days until Jan. 19 to formulate its response.
As the case takes an unexpected turn, the three-year-long legal feud shows no signs of resolution. The latest extension indicates that the courtroom drama is far from over, and both Ripple and the SEC are bracing themselves for another round of legal maneuvering in this high-stakes battle.