The US judicial authorities have compelled Ripple to submit financial documentation from the past, following a formal request from the SEC.

The district judge in the United States has instructed Ripple with regards to providing additional financial information and insights into its institutional XRP sales, marking a significant ruling in favor of the Securities and Exchange Commission. Ripple The court has given the green light for the SEC to require Ripple to yield further information to assist the judicial assessment of appropriate sanctions. This includes the necessity to submit financial documentation for the years 2022 and 2023, along with agreements related to the institutional sales of XRP. Furthermore, Ripple must respond to questions regarding the revenue received from these sales. SEC ).

In its defense against the SEC's motion, Ripple argued that its financial health is irrelevant to the case at hand. However, the court concluded that there was insufficient reason to speed up the investigation by withholding widely available information that may be critical during the resolution phase.

The judge sided with the SEC, recognizing the significance of information concerning XRP sales that occurred after the complaint was filed in determining the necessity and appropriateness of an injunction.

The SEC took legal action against Ripple and its leadership back in 2020, claiming that the company raised $1.3 billion through selling XRP. The agency also launched lawsuits against CEO Brad Garlinghouse and co-founder Chris Larsen. institutional sales In a ruling last year, Judge Analisa Torres of the Southern District Court in New York determined that the transactions involving XRP sold to institutional investors constituted illegal sales, whereas 'blind bid' sales to retail investors were not categorized as such.

SEC Targets Ripple for XRP Sales

While the judge acknowledged that contracts worth $728 million tied to institutional sales were classified as unregistered securities transactions, both investors and Ripple Labs saw this partial decision as a positive sign for the broader cryptocurrency sector. Consequently, Ripple celebrated the dismissal of all allegations against its executives as a critical progression in the ongoing legal journey. Ripple Recently, at the World Economic Forum held in Davos, Ripple's CEO, Brad Garlinghouse, criticized the SEC for its perceived hostility towards the industry. He further voiced his belief that the current SEC Chair, Gary Gensler, is viewed as a 'political liability' and emphasized Gensler’s regulatory stance within the cryptocurrency sphere. Christian Larsen .

The developments in Ripple's case, including the recent advantageous ruling for the SEC and Ripple's subsequent responsibilities, underscore the intricate relationship between regulatory oversight, court interpretations, and industry responses, highlighting the pressing need for clearer regulations in the cryptocurrency market. securities Securities and Exchange Commission

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