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Ripple Pushes Back Against SEC's Late Financial Document Requests

Ripple Labs challenges the SEC's late request for additional financial documents, arguing that the demands are untimely and irrelevant as the trial nears its April commencement.

Ripple Labs is now challenging a recent move by the United States Securities and Exchange Commission (SEC) to procure additional financial documents, stating that the request is both untimely and irrelevant. Ripple's legal team, in a new twist in the ongoing courtroom drama, argues that the SEC's demands for more data post the discovery phase deadline are unjustified.

SEC's Demands Met with Firm Resistance

In a legal filing dated January 19, Ripple's attorneys assert that the SEC's latest request to access audited financial statements for 2022 and 2023, along with details of XRP-related contracts and institutional sales, is invalid. The deadline for the discovery phase, a critical period in legal proceedings for evidence exchange, has already elapsed. Ripple’s defense points out that the SEC had ample opportunities to request these materials earlier in the process.

Ripple's Stand on SEC's Interrogatories

Adding to the dispute, Ripple's representation highlights that the SEC has exhausted its quota of interrogatories, a set of formal questions submitted for response before the trial. Ripple’s legal team emphasizes that the SEC cannot unilaterally extend its interrogatory limit to further its case.

This development adds another layer to the ongoing legal battle set to culminate in a trial starting this April. The SEC's lawsuit, initiated in December 2020, accused Ripple of conducting unregistered securities offerings via XRP. However, in a significant ruling in July 2023, the judge declared that XRP cannot be treated as a security concerning programmatic sales on cryptocurrency exchanges.

Ripple's Chief Legal Officer Stuart Alderoty recently criticized the SEC, labeling it an “out-of-control regulator,” especially in its approach to cryptocurrency regulation.