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Crypto: Ripple plays its last trump card to destabilize the SEC

Thu 30 May 2024 ▪ 3 min of reading ▪ by Fenelon L.
Regulation Crypto

In a new filing with the court, Ripple Labs strengthens its offense against the U.S. Securities and Exchange Commission. As the highly anticipated judgment approaches, the crypto company firmly refutes two key arguments raised by the financial regulator.

Ripple fait face a la SEC pour son affaire crypto

Ripple contests the relevance of its current financial situation

As the final judgment approaches rapidly, the legal saga between Ripple and the SEC sees new developments. In its filing before Judge Analisa Torres, the crypto company, Ripple, categorically rejects the SEC’s argument that its current financial situation should influence decisions on potential sanctions.

«Ripple does not claim that it could be unable to pay a measured penalty, and there is otherwise no reason to believe that Ripple’s current financial statements (years after the contested conduct) are relevant to the Court’s analysis. »

The defense argues that the company’s financial health, assessed years after the alleged violations, is not pertinent in this litigation. It cites legal precedents supporting the “legitimate right to keep the financial documents of a private company confidential.”

Moreover, Ripple highlights the lack of necessity to disclose these sensitive information, which the court might dismiss. The crypto company argues that its analysis should not consider its current financial statements, established after the contested conduct.

Ripple defends the confidentiality of its past sales contracts

The other major claim discussed concerns Ripple’s historical contracts, which the SEC deems outdated due to changes in XRP sales terms. Nevertheless, through its financial director Jonathan Billich, the company asserts that these past contractual terms remain confidential and commercially sensitive.

According to Billich, future counterparties could gain a significant advantage if they accessed the terms negotiated in these prior contracts. Ripple emphasizes that its sales methods have evolved, with current transactions now excluding the discounts previously offered to savvy partners.

Furthermore, the company refutes the allegations of the SEC regarding the obligation to publicly disclose XRP prices under the securities law, given that the court ruled that XRP is not a security.

In this fierce battle, Ripple makes significant efforts to protect its commercial interests and preserve the confidentiality of strategic data. As the judicial resolution nears, both parties compete with legal arguments to tip the scales in their favor.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

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