Loading...

Ripple Labs Inc. files sur-reply in ongoing XRP lawsuit

Ripple

Most read

Loading Most Ready posts..

TL;DR

  • Ripple Labs fights SEC in XRP lawsuit, submitting a sur-reply to address inaccuracies.
  • SEC demands Ripple’s financial data and XRP sales info, sparking ongoing legal disputes.
  • The case outcome could impact how cryptocurrencies are regulated in the United States.

Ripple Labs Inc. has taken a significant legal step in the lawsuit against the U.S. Securities and Exchange Commission (SEC) by submitting a motion to file a sur-reply. The motion addresses what Ripple terms as “significant factual mischaracterizations” presented by the SEC. 

The legal maneuver, presented before Judge Sarah Netburn of the Southern District of New York, has added another layer of intensity to the already contentious case.

SEC requests audited financial statements and more

At the center of this legal battle is the SEC’s request that Ripple provide audited financial statements for 2022-2023. Additionally, the SEC is seeking documents related to the sale or transfer of XRP to entities other than employees. 

Furthermore, the regulatory body is interested in obtaining information concerning the proceeds Ripple received from institutional XRP sales following the lawsuit’s initiation.

Ripple had previously objected to these requests from the SEC, claiming that they were overly burdensome. However, the SEC has vehemently refuted these objections, asserting that Ripple’s objections are baseless and inaccurate. 

This ongoing dispute over document production and its burden on Ripple is a key point of contention in the case.

Ripple’s sur-reply motion

In response to the SEC’s refutations and the broader narrative surrounding the lawsuit, Ripple’s counsel has filed a sur-reply motion. This motion aims to clarify what Ripple believes to be inaccuracies presented by the SEC in its recent submissions. 

One specific point of dispute highlighted in the sur-reply is the SEC’s portrayal of Ripple’s resistance to producing post-complaint contracts. Ripple argues that it specifically objected to the SEC’s request as “overly burdensome,” directly contradicting the SEC’s narrative.

The submission of this sur-reply motion marks a critical juncture in the ongoing legal proceedings between Ripple Labs Inc. and the SEC. As both parties continue to clash over the scope of document production and the burden it places on Ripple, the case has become increasingly complex.

What lies ahead

The outcome of this lawsuit has significant implications for Ripple and the broader cryptocurrency industry. The central question is whether XRP, the digital asset created by Ripple, should be classified as a security or a digital currency. The classification could have far-reaching consequences for how XRP is regulated and traded in the United States.

While the legal battle unfolds, market observers and participants closely watch the developments. The case has the potential to set a precedent for how the SEC regulates cryptocurrencies and how companies in the crypto space operate within the United States.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

Stay on top of crypto news, get daily updates in your inbox

Related News

Cryptopolitan
Subscribe to CryptoPolitan