In the legal battle between the U.S. Securities and Exchange Commission (SEC) and #Ripple , the SEC has increased its pressure. On January 11, the SEC filed a request with the U.S. District Court for the Southern District of New York. This proposal seeks an order from Judge Sarah Netburn compelling Ripple to provide financial records for the years 2022 to 2023. For the SEC, this represents a strategic move in its continuing effort to compel the cryptocurrency company to cooperate.

Scope and Consequences of the SEC Request

The recent SEC request focuses on documents related to the XRP "Institutional Sales" contracts following the complaint. This request follows a decision in July 2023 when a judge ruled that XRP from Ripple qualifies as a security only when sold to institutional investors. The SEC is seeking evidence to support its case by searching for these specific documents. The commission argues that this request for "limited and targeted discovery" will assist Judge Torres in deciding on appropriate remedies if XRP is found liable for violating the 1933 Securities Act.

 Ripple's Response to the SEC Proposal

Ripple responded to the SEC's proposal by requesting an extension of the response deadline from January 17 to January 19. This ongoing legal saga began in December 2020 when the SEC filed a lawsuit against XRP, its CEO Brad Garlinghouse, and Executive Chairman Chris Larsen. The lawsuit alleges that Ripple used unregistered securities to raise funds. A significant development was the withdrawal of the case against Garlinghouse and Larsen by the SEC in October 2023, but the SEC maintained its stance against Ripple.

 Legal Battle Between Ripple and the SEC and Its Implications for Cryptocurrencies

The court case between Ripple and the #SEC is set to begin in April. This case is part of a broader regulatory crackdown by the SEC on major U.S. #cryptocurrency exchanges, including #Coinbase and #Binance . The commission's aggressive stance led Ripple's Chief Legal Officer, Stuart Alderoty, to label the SEC as a "regulator out of control," especially in its approach to cryptocurrency regulation.

 The crypto community eagerly anticipates the outcome of this process, as it could set a significant precedent for the treatment of digital assets under U.S. securities law. The recent SEC proposal and Ripple's response reflect the high stakes and complexity of this pivotal case. With the approaching court date, both the financial and cryptocurrency sectors are closely monitoring developments, understanding that the court's decision could have far-reaching implications for the regulatory environment of digital assets in the United States.

 SEC's Final Move and Its Impact on Cryptocurrency Regulation

The SEC's latest proposal, which compelled Ripple to provide financial records for the years 2022 to 2023, represents a crucial phase in this significant legal battle. As the court considers the SEC's request, the outcome will not only affect the immediate future of XRP but could also potentially influence the regulation of digital assets in the United States.

 Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“