U.S. District Court approves SEC motion and requests Ripple to submit XRP sales documents

9 months ago 64

Request information on XRP sales to institutions

A judge in the U.S. District Court for the Southern District of New York granted a motion by the U.S. Securities and Exchange Commission (SEC) on the 5th, ruling that Ripple must submit documents documenting the sale of its crypto asset (virtual currency) XRP to institutional investors. It was judged.

As a result, Ripple must disclose financial statements for 2022-2023 and the agreements governing the sale of XRP to institutional investors. They will also need to answer questions regarding the amount of revenue from selling XRP to institutional investors.

#XRPCommunity #SECGov v. #Ripple #XRP Magistrate Judge Netburn has granted the @SECGov‘s Motion to Compel in its entirety. pic.twitter.com/QrFZjGbUNN

— James K. Filan (@FilanLaw) February 5, 2024

Ripple had objected to the SEC’s request to release its financial documents, stating that their financial statements are highly confidential.

However, District Judge Sarah Netburn deemed there was “no reason to refuse to provide readily available information that could be useful as evidence in the resolution of a case.”

Netburn also acknowledged that information about XRP sales to institutional investors could help determine the necessity and fairness of an injunction against Ripple.

The SEC argued that disclosing this information would be the basis for considering Ripple’s potential for future violations and the extent of civil penalties.

What is SEC (Securities and Exchange Commission)?

Established in 1934. The purpose is to ensure fair trade and protect investors, and prevents insider trading, corporate accounting fraud, market manipulation, etc. It also determines whether virtual currency falls under the category of securities.

Virtual currency glossary

connection: XRP price plummets due to spread of misinformation, Ripple co-founder Larsen’s personal account falls victim to unauthorized access

History of the trial

The lawsuit between Ripple and the SEC has been ongoing since December 2020. The SEC sued Ripple for offering unregistered securities, and the debate centered on what constitutes a security.

Last July, District Court Judge Torres ruled that XRP itself is not a security. It is also considered that sales to individual investors on exchanges do not qualify as securities. This was seen as a victory for the cryptocurrency industry.

On the other hand, courts have recognized that sales to institutional investors qualify as securities. Deliberations are continuing to find a solution to this issue.

connection:Summary of the “Ripple lawsuit” filed by the US SEC (December 2020 to October 2023)

In January, Ripple CEO Brad Garlinghouse criticized SEC Chairman Gary Gensler as politically responsible.

“I do think the chair of the SEC, Gary Gensler, is a political liability in the United States. And I think he’s not acting in the interests of the citizenship, he’s not acting in the interests of the long-term growth of the economy , and I don’t understand it.” https://t.co/fjqnG9xnuk

— Brad Garlinghouse (@bgarlinghouse) January 16, 2024

I don’t think Chairman Gensler is acting in the interests of the people. He also won’t be acting for the long-term growth of the economy. I don’t understand this.

Are you preparing to apply for an XRP ETF?

Although the lawsuit with the SEC has not yet been resolved, Ripple may be preparing to apply to list XRP as an exchange-traded fund (ETF). A job posting on the company’s official website calls for a position that will “drive cryptocurrency-related ETF initiatives with internal trading teams and related partners.”

connection: Ripple preparing to apply for XRP ETF listing New job information