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Ripple challenges SEC finance request

by SuperiorInvest

Lawyers representing Ripple Labs have argued that the U.S. Securities and Exchange Commission’s (SEC) request to examine additional financial documents is invalid. They argued that the deadline has already passed and that the material is not relevant to the upcoming trial in April.

In a Jan. 19 court filing, Ripple’s legal team stated that the SEC had changed its stance on gathering additional information during the discovery phase, which requires each party to share relevant documents with the other as part of the legal process. .

On January 11, the SEC required Ripple to file audited financial statements for financial years 2022 and 2023, disclose all contracts related to the sale or transfer of XRP (XRP) to third-party entities made after the initial filing, and provide additional details. on the proceeds from the institutional sale of XRP.

However, the deadline to request material during the fact discovery phase ended in August 2021. Ripple argued that the SEC had “ample opportunity” to demand material it deemed necessary.

“In fact, the parties have already litigated whether post-suit discovery was appropriate and in the course of that discovery dispute, the SEC never argued that post-suit discovery was relevant to the remedies, but instead adopted the position that the post-suit conduct was completely irrelevant to the case.”

Meanwhile, Ripple’s legal team emphasized that the court should not be swayed by the US regulator’s characterization of the blockchain payments technology company.

“The Court should not fall down the slippery slope that the SEC is preparing,” the lawyers stated.

Additionally, Ripple’s lawyers maintained that the SEC exhausted all of its interrogatories, which are a list of written questions that the SEC could present to Ripple to answer before trial.

“And finally, regarding the SEC’s interrogation in particular, the SEC has used all of its interrogatories in the case and no more can be unilaterally granted,” the document states.

Related: Ripple Legal Chief Reveals SEC’s XRP Settlement Offer Ahead of 2020 Lawsuit

The trial between Ripple and the SEC will begin in April. The regulator initially filed charges against Ripple in December 2020, accusing the company of raising funds by selling unregistered securities through XRP.

However, Ripple won a partial victory against the SEC in July 2023, when the judge ruled that the XRP token is not a security when it comes to programmatic sales on crypto exchanges.

Cointelegraph recently reported that Ripple Chief Legal Officer Stuart Alderoty referred to the SEC as a “runaway regulator” due to its position on cryptocurrencies.

Magazine: Crypto Banter’s Ran Neuner Calls Ripple ‘Despicable’, Tells ZachXBT: Hall of Flame

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