Ripple Asks Courtroom to Dismiss The SEC’s Movement to Compel

• Ripple has filed to oppose the U.S. Securities and Trade Fee’s (SEC) movement to compel.
• In line with Ripple, the SEC didn’t make its requests whereas truth discovery was open.
• Ripple additionally claimed that the SEC didn’t justify every of the requests on the deserves.

Ripple has filed to oppose the U.S. Securities and Trade Fee’s (SEC) movement to compel sure post-complaint discovery. In a submitting dated January 19, 2024, and addressed to Hon. Sarah Netburn of the Southern District of New York, the blockchain firm famous its causes for opposing the SEC’s requests.

Ripple argued that the SEC’s requests have been premature, noting that the fee didn’t make its requests whereas truth discovery was open. Therefore, the company lacks good trigger to take action belatedly. Ripple additional famous that each events already litigated whether or not post-complaint discovery was correct, throughout which the SEC by no means argued that post-complaint discovery was related to cures.

Another excuse Ripple acknowledged for opposing the request is the SEC’s failure to justify every of the requests on the deserves. In line with the submitting, the knowledge the SEC seeks has no bearing on the Courtroom’s cures willpower. Ripple argued that the SEC needs to have the Courtroom substitute a abstract willpower on the deserves of whether or not Ripple’s post-complaint gross sales represent funding contracts.

The blockchain firm pleaded with the Courtroom to not heed the SEC’s request, noting that it violates the regulation and would result in an intense and extended truth discovery interval. Extra critically, the submitting argued that the SEC’s abstract process would deprive Ripple of protections that might apply to a pre-suit investigation of recent conduct. It additionally famous that the SEC had used all of its interrogatories within the case and couldn’t unilaterally grant itself extra.

The SEC earlier filed for the Courtroom to compel Ripple to provide audited monetary statements for 2022 and 2023. The company additionally sought the Courtroom to ask Ripple to provide all post-complaint contracts for the sale or switch of XRP to “non-employee counterparties” and reply an interrogatory in regards to the quantity of “XRP Institutional Gross sales proceeds” it obtained after the submitting of the Grievance for sure contracts.