- The battle between Ripple Labs and the SEC is escalating.
- The SEC maintains its request for additional financial documents and XRP sales contracts.
- Ripple objected to the request, claiming it had already provided the necessary materials.
The battle between Ripple Labs and the United States Securities and Exchange Commission continues to escalate as the regulator strongly dismissed several of the blockchain company’s assertions this week.
In a court filing Tuesday, the SEC maintained that its request for additional Ripple financial documents and XRP sales contracts as part of “remedies discovery” remains fully relevant to any potential case resolution or penalties. The agency harshly refuted Ripple’s categorization of the request as “untimely,” citing legal precedent allowing such evidence gathering.
The strongly-worded rebuttals follow Ripple’s objection that it had already furnished the necessary materials before discovery concluded last August. However, the SEC contends that information related to potential penalties or future violations cannot be time-barred.
On the late demands for audited financial statements from 2022 and onward, the SEC states a defendant’s wealth is pertinent when calculating fines intended to deter repeat offenses. It argued that access to updated financials would offer the required context should penalties come into consideration.
SEC and Ripple battle continues
Additionally, any documentation around Ripple’s institutional XRP distribution following the SEC’s initial complaint provides insights on prospective violations related to the same unregistered securities accusations, regulators asserted.
The contentious discovery dispute represents just the latest development in the long-winding legal affair as both sides jockey for positioning ahead of a looming trial.
Earlier this month, the SEC earned a partial win, allowing deposition evidence to be introduced related to Ripple co-founder Chris Larsen. But Ripple has notched its share of legal victories since the lawsuit began in late 2020.
With remedies and penalties now a key point of contention, the latest SEC filing suggests regulators plan to levy substantial sanctions if able to prove accusations that XRP transactions violated investor protection laws. But overcoming Ripple’s defenses remains a formidable challenge.
The cryptocurrency community continues to monitor the high-stakes case and its ramifications for XRP, crypto innovation, and regulatory overreach. This week’s court drama shows neither side plans to temper aggressive tactics anytime soon.
