Ripple’s legal team rejected the U.S. Securities and Exchange Commission’s (SEC) request for additional financial documents.
On January 19, the defense denied the SEC’s request, finding it untimely and unwarranted.
Ripple challenges SEC demands
The SEC requested Ripple’s 2022 and 2023 audited financial statements and post-event agreements related to the sale or transfer of XRP to non-employee counterparties. The regulator also requested information about the XRP institutional sales proceeds received from certain complaint contracts.
But Ripple argued that the SEC’s request was “inappropriate,” emphasizing that both parties had previously agreed that post-compliance discovery was unnecessary. Moreover, the company argued that the SEC failed to sufficiently justify each request.
Expressing concerns about potential delays, Ripple believes that post-compliance reassessment of whether conduct violated the law could prolong the process, necessitating an intensive and lengthy fact-finding period. Attorneys also raised concerns that the SEC’s summary proceeding would likely strip them of standard pre-litigation investigation protections.
Additionally, Ripple’s lawyer argued that the regulator cannot unilaterally extend the hearing in this case. As a result, Ripple rejected the SEC’s request, labeling it “onerous” especially given the deadline.
“The SEC’s request for irrelevant and burdensome post-filing discovery, especially at the end of factual discovery, should be denied,” the attorneys wrote.
This latest development comes against the backdrop of the ongoing legal dispute between Ripple and the SEC. Ripple achieved a landmark victory last year selling its XRP token to the public, but not its security, but the company is anticipating potential challenges ahead. In particular, the situation is becoming more complicated as the trial between the parties is scheduled to begin in April.
Read more: Ripple (XRP) price prediction for 2024/2025/2030
Meanwhile, the XRP token has been minimally affected despite trading primarily in negative territory over the past week. During this period, the digital asset fell 5%, reaching a low of $0.526. However, it later rebounded to $0.5484.
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