The SEC scores a point in the cryptocurrency sector with the ongoing lawsuit against Ripple. This legal saga between the US regulator and Ripple has been dragging on for years, with no loss of intensity. Despite Ripple Labs’ recent successes, Gary Gensler, head of the SEC, remains determined not to give in on the XRP cryptocurrency. This fight seems to be supported by the judge in charge of the case. He is demanding that Ripple quickly produce the required financial documents, even against its will.
Ripple forced to provide documents requested by the SEC
Ripple presents itself as a leader in the cryptocurrency sector. However, its centralized nature and banking orientation, especially prior to 2019, are often overlooked. What’s more, the questionable defense of its CEO, Brad Garlinghouse, who accused the SEC in 2020 of favoritism towards BTC and ETH, doesn’t reinforce unity in the industry.
In any case, the SEC lawsuit against Ripple Labs continues. It focuses mainly on sales of XRP to institutional investors. These investors are potentially undeclared as financial securities. However, offers made to retail investors are no longer within the same framework.
Ripple is forced to provide documents required by the SEC The XRP cryptocurrency is at the heart of the dispute between Ripple and the SEC While Ripple’s CEO denounces the SEC’s inconsistency, the trial continues. The court’s latest ruling was an injunction, requiring Ripple to disclose XRP’s financial statements and sales contracts for the years 2022 and 2023 to institutional investors.
Tribunal considers appropriate sanctions
Clearly, the debate over XRP’s status as an unregistered financial security for institutional sales is pushing the court to take the next step: determining sanctions against Ripple Labs.
The SEC appears to need Ripple’s 2022 and 2023 filings to clarify these unregistered transactions. But Ripple is resisting, arguing that the company’s financial health is irrelevant to SEC regulation. This opposition was rejected by the court, stressing the importance of the information available for the eventual redress of damages.
Ripple is therefore obliged to provide the documents requested by the SEC. This situation could push the company even further out of the United States, a flight that is already well underway…
