- Ripple has submitted its final response to the SEC’s seal request financial documents.
- According to the SEC, there is no evidence that the financial Ripple says that details are important for determining fines, but they also claim disclosure of information could hurt its position in the market.
The legal confrontation The relationship between Ripple and the US Securities and Exchange Commission has now reached a critical point. The SEC will be re-established on May 20, 2024. filed A comprehensive response to Ripple’s request to seal some financial documents. The final document before the Southern District of New York Judge Analisa Torres deliberates about the remedies phase of the high-stakes lawsuit.
The SEC’s argument for Transparency
Ripple’s Motion is strongly opposed by the SEC in its filing to conceal key financial data The Court will evaluate the appropriate remedy based on contractual clauses. SEC stresses the importance of allowing public access to court documents in order to maintain legal transparency. The SEC emphasizes the precedent established in Lugosch V. Pyramid Co. Of Onondaga. “The common law right of public access to judicial documents is firmly rooted in our nation’s history.”
Ripple has requested that the SEC seal five exhibits. However, they have refused to do so. “conceal financial and securities sales information” The material that is being seized from the public, including photographs and videos, can be deemed illegal. financial Figures and other specifics are necessary to request remedies.
Ripple must provide these details to determine its compliance with the law and potential penalties. According to the SEC,
“Ripple invites the public to form opinions about the merits of the SEC’s positions. It cannot simultaneously hide from them the evidence on which that position is based.”
Ripple’s Justification and SEC’s Counterarguments
Ripple believes that disclosure of sensitive data to the public is unlawful financial details could harm its competitive position Market. The SEC points out contradictions in Ripple’s arguments regarding the importance and sensitive nature of the information. SEC argues that once a document is considered relevant in exercising judicial powers, public access should be given significant weight.
SEC emphasizes the importance of the information in the legal system to counter the argument that it is irrelevant. The SEC also notes that Ripple’s information is out-of-date, and that financial Ripple’s business activities today are not likely to be affected by past details.
What are the stakes?
In December 2020 the SEC filed a lawsuit alleging that Ripple had conducted an unregistered securities. Analisa Torres, a judge in the United States, ruled, on July 20, 2023 that, while XRP is not a securities, sales to institutions of XRP are investment contracts.
When the case nears its end, the stakes are high. Ripple says any fines must not be more than $10 million. Ripple calls the SEC’s demands ridiculous. “draconian.” It will be important to determine the future of Ripple, and the XRP token. The upcoming judgement by Judge Torres regarding the remedies is crucial. XRP continues to be resilient in spite of the legal uncertainty. As it stands, XRP has a price above $0.54. This represents a decline of 1.1% on the day.
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Source: www.crypto-news-flash.com