Ripple wants to force SEC to disclose why it views XRP as securities, differently than Bitcoin and Ethereum
Just when it seemed like the SEC-Ripple lawsuit might be heading towards settlement talks, Judge Netburn denied the regulatory body’s access to the blockchain firm’s legal advice documents a couple of days back. The legal battle has become even more heated-up and intense since. In another development, Ripple files a motion requesting SEC to hand over documents related to the ongoing complaint.
Ripple files motion requesting SEC to hand over documents related to ongoing complaint
Accordingly, lawyers representing Ripple Labs, CEO Brad Garlinghouse and co-founder, Chris Larsen, filed a petition on Friday to force the Securities and Exchange Commission to appear submitted two sets of documents requested by the company earlier this year.
Documents regarding SEC communications with third parties related to Bitcoin, Ethereum, XRP. Ripple is seeking to force the SEC to disclose why it came to the conclusion that BTC and ETH are commodities, not securities like XRP.
Last December, the SEC filed a complaint alleging that Ripple raised more than $1.3 billion through an ongoing, unregistered digital asset securities offering. The agency is seeking mitigation under the order.
In a December press release, Stephanie Avakian, Director of the SEC’s Enforcement Division stated:
“We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP…”
On April 6 and May 6, U.S. District Court Judge Sarah Netburn in the Southern District of New York asked the SEC to provide the documents, but the agency has yet to comply, citing that there are related to.
The two sides have met independently five times to try to resolve the issue, most recently on June 1, according to Ripple’s motion. At CoinDesk’s Consensus 2021 event last month, Garlinghouse said he feels the case has broader consequences for how cryptocurrencies are perceived in the US.
- Ripple Believes Records Held By Offshore Exchanges Will Prove Its Executives Did Not Violate Section 5 Of The Securities Act
- Due To Resource Pressures, Only A Small Percentage Of Cases Ever Reach Trial So SEC May Try To Settle With Ripple