A New York judge has ruled in favor of the U.S. Securities and Exchange Commission (SEC) in their ongoing lawsuit against Ripple Labs. The SEC requested specific financial statements and information regarding Ripple’s institutional sales of XRP tokens, and the court has compelled their production.
This development follows a key decision in July 2023. Judge Analisa Torres ruled that only Ripple’s institutional XRP sales violated U.S. securities laws, a verdict considered a win for the crypto industry in its quest for regulatory clarity. However, the judge must still determine potential penalties for Ripple’s post-lawsuit activities.
The SEC argues that the requested documents are crucial for assessing appropriate civil penalties or injunctions against Ripple. These documents encompass financial statements for 2022-2023 and contracts related to institutional XRP sales since the lawsuit’s initiation in 2020.
Ripple opposes the SEC’s request, citing its timeliness and the SEC’s alleged failure to justify each request sufficiently. They argue that the SEC’s demand for additional information, especially after fact discovery has concluded, is unnecessary and burdensome.
This latest development adds another layer of complexity to the already intricate Ripple vs. SEC lawsuit. The final verdict and potential penalties remain determined, with continued legal battles expected.
