The legal dispute between Ripple and the US Securities and Exchange Commission (SEC) is approaching a critical juncture as both sides await a pivotal ruling from the court.
The legal dispute between Ripple and the US Securities and Exchange Commission (SEC) is approaching a critical juncture as both sides await a pivotal ruling from the court.
According Bill Morganan XRP enthusiast and legal expert, “Judge Torres may need to rule on the SEC’s motion to compel quickly given the February 12 deadline to complete discovery related to the solutions.”
The next key date in the Ripple-SEC lawsuit is February 12, which is when the parties are expected to complete all discovery related to the solutions. In this sense, a fundamental decision on the SEC’s motion to force Ripple to produce certain financial information could influence events.
On January 11, the SEC sought an order compelling Ripple to produce two limited categories of documents: (a) its financial statements for the years 2022-2023, and (b) its post-complaint contracts governing “sales.” institutional”, held to be unregistered offers and sales of securities with prior complaint.
In connection with this, the SEC seeks to compel Ripple to respond to a single interrogatory, establishing the amount of profits from institutional sales of XRP that it received after the filing of the lawsuit for contracts entered into before the lawsuit.
The SEC stated that it was seeking this information to determine whether the court should impose injunctive relief and civil penalties and, if so, in what amounts.
This issue has gone back and forth between the parties: Ripple submitted its response to the SEC. The SEC has filed another response to support his motion to compel. Ripple also filed a motion to file a counter reply, which was granted.
Ripple’s opposition to this motion makes clear its position that Judge Torres’ Institutional Sales ruling does not apply to Ripple’s current ODL sales.
The SEC, on the other hand, claims that the discrete post-complaint contracts it seeks are probative evidence of this argument.
The agency further states that it is not asking Judge Torres to conduct a mini-trial on the legality of Ripple’s post-complaint institutional sales, as he agrees that such a determination cannot be made at the remedies stage. .
The SEC maintains that it intends to test at the remedies stage the question of whether there is a “reasonable probability” that new violations will occur.
Ripple, on the other hand, argues that its planned future sales of XRP do not conflict with Judge Torres’ summary judgment. The XRP community is keeping its fingers crossed for a favorable outcome on the issue.
