Ripple's Legal Chess: Pro-XRP Advocate Dives Into SEC's

In a noteworthy turn of events within the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC), US District Judge Sarah Netburn approved the SEC’s plea for Ripple to provide more extensive financial information and details regarding its institutional sales of XRP.

The court ruling requires Ripple to submit its financial statements for the years 2022 and 2023, along with the contracts governing institutional sales of XRP. Furthermore, the company must provide clarification on the amount of proceeds obtained from these institutional sales of XRP.

However, Upon receiving the SEC’s initial motion, Ripple contended that the company’s financial well-being was irrelevant to the case. Nevertheless, the court disagreed, asserting that there is no justification for bypassing an investigation by denying access to readily available information that could be relevant to the remedy phase.

Judge Netburn also agreed with the SEC’s stance that information regarding institutional sales of XRP after the complaint is essential in evaluating the necessity and fairness of an injunction.

Impact Of SEC’s Decision On XRP Community

Bill Morgan, a well-known attorney supporting XRP, remarked on the matter, emphasizing the court’s timely decision, particularly in light of the looming deadline of Feb 12, 2024, for completing discovery related to remedies.

Morgan said, Judge Torres must decide on SEC’s motion by Feb 12, 2024.” The SEC’s move was granted, which surprised me not at all. I think the XRP community is excited to see the contracts after the Ripple complaint.

Morgan went on to ponder the possible consequences of this decision, indicating that its greater influence could be on the likelihood of a lasting injunction rather than on the monetary sanctions facing Ripple.

However, I believe it won’t change John Deaton’s opinion. I agree with him about Ripple’s potential fine, which may be less than their legal fees. It is important for deciding if a permanent ban will happen and how severe it might be.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.