Bitrabo Editorial
In a recent development, Ripple Labs has taken a significant step in defending itself against the US Securities and Exchange Commission (SEC) by directly addressing two key arguments made by the SEC in their ongoing legal dispute. This move comes at a critical juncture, with the SEC proposing penalties close to $2 billion, while Ripple suggests a cap of $10 million.
Ripple’s Response in Latest Submission
In a detailed letter to Judge Analisa Torres, prepared by Andrew J. Ceresney of Debevoise & Plimpton LLP, Ripple challenges the SEC’s claim that its current financial status should impact the court’s decisions on past penalties. The SEC had emphasized the importance of considering this information in determining appropriate remedies for Ripple’s previous actions.
Ripple disagrees, arguing that its financial condition at present, evaluated years after the alleged misconduct, should not be relevant to the case. The company asserts that its ability to pay any potential penalty is not in question, and there is no basis to link its current financial state to past events.
Moreover, Ripple highlights the unnecessary disclosure of sensitive financial data, citing legal precedents supporting a company’s right to privacy regarding financial matters. The company also addresses the SEC’s stance on the significance of historical contracts, stating that past contract terms remain confidential and commercially sensitive despite changes in XRP sales methods.
Ripple further contests the SEC’s assertions regarding the disclosure of XRP prices under securities laws, emphasizing that the court had already ruled XRP as not being a security. This distinction renders the terms of historical contracts irrelevant to current securities regulations.
With the legal proceedings nearing a conclusion, Ripple’s defense strategy underscores the importance of maintaining financial privacy and protecting commercially sensitive information. The decision on Andrea Fox’s role as a witness remains pending, signaling the impending verdict by Judge Torres on the case’s remedies phase.
Current XRP trading stands at $0.5261.