- Ripple Labs launched a vigorous legal defense of its claims against the SEC, challenging directly two main arguments that the regulatory body presented.
- Ripple’s defensive strategy confirms that the company believes its current defense is sufficient financial The SEC does not consider historical or standing contracts.
Ripple Labs’ legal defense has been intensified against the US Securities and Exchange Commission. The regulatory body is presenting two main arguments in its ongoing legal fight. In a filing recently presented to the Southern District of New York Judge Analisa Turres, this move was described. It comes at a critical time as the SEC has been pushing for penalties in excess of $2 billion. Ripple had proposed an upper limit of $10,000,000.
In a comprehensive letter addressed to Judge Torres, penned by Andrew J. Ceresney of Debevoise & Plimpton LLP, Ripple challenges the SEC’s argument that its present financial The court should consider standing when making decisions about past penalties.
In the SEC’s Opposition Brief, the regulator referred to where this data was deemed by the regulatory body “important to the Court’s determinations” Ripple does not agree with Ripple’s assertion that it has remedies to deal with past infractions. financial Status, assessed years after the alleged violation, should not hold any significance relevance to the case.
They claim that the defense is wrong.
“Ripple is not arguing that it may be unable to pay any measured penalty, and there is otherwise no reason to believe that Ripple’s current financial statements (from years after the challenged conduct) are relevant to the Court’s analysis.”
Fintech firms also highlight the need to avoid disclosing confidential information. financial The court can ignore details without giving them due consideration. Ripple’s legal precedents, including Tropical Sails Corp. v. Yext, Inc., recognize a “legitimate privacy interest in the financial documents of a privately held company”.
Ripple puts the SEC in the Back Seat
Ripple’s response to SEC’s claims addresses an important point about the relevance of historical contracts. Crypto News Flash report. The SEC has dismissed these contracts due to the changes made in XRP’s sales method. However, Ripple and its CFO Jonathan Billich argue otherwise.
Billich declares that the commercial and confidential nature of past contracts is still a secret. The disclosure of these contracts could possibly give future counterparties an undue advantage in negotiation. Ripple says that it’s current XRP sales are significantly different than past contracts over the counter, and there is no offer of discounts to sophisticated counterparties.
#XRPCommunity #SECGov v. #Ripple #XRP @Ripple Has filed a letter of reply in support of the Motion to Seal Documents in relation to the @SECGovMotion for Judgment & Remedies. pic.twitter.com/NeuFZII1m8
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 29, 2024
Ripple further challenges SEC claims that XRP contracts are investment contracts and therefore require registration. Ripple argues, given the previous court determination that XRP was not a securities, that the terms of historical contracts must be treated differently than those that apply to registered security.
Ripple has a firm position on its non-relevance. This is evident in the defense strategy. financial The SEC case is based on historical and current contracts. Andrew J. Ceresney of Debevoise & Plimpton LLP, representing Ripple, emphasizes the company’s right to privacy and commercial sensitivity in the financial sector.
In the document, he states that he is a lawyer. “Even if the SEC’s arguments were plausible, Ripple has still established a valid, commonly accepted basis for sealing its confidential financial documents,” It is important to maintain confidentiality when dealing with such issues.
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Source: www.crypto-news-flash.com