The SEC has filed a motion demanding that Ripple provide financial documents and contracts related to the sale of XRP to institutional investors.
Reaction of Ripple to the SEC’s demand
Ripple filed a motion on January 11 requesting an additional two days (until January 19 instead of January 17) to respond to the SEC’s motion. This marks an escalation in the ongoing dispute between Ripple and the SEC, which began in December 2020 when the SEC accused Ripple of using unregistered securities to raise funds.
Continuation of the trial and implications
The SEC stated its intention to drop the case against Brad Garlinghouse and Chris Larsen in October 2023, but chose to continue its action against the crypto firm. Ripple’s trial with the SEC, scheduled for April, is part of a broader context of the SEC’s actions against major cryptocurrency players in the United States, including Coinbase and Binance.
Stuart Alderoty, Ripple’s General Counsel, referred to the SEC as an ‘out of control regulator’ due to its stance on cryptocurrencies.
