Bitrabo Editorial
On May 20, a crucial step is expected in the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC). The SEC will be responding to Ripple’s motion aimed at safeguarding the company’s business concerns.
SEC’s Response to Ripple’s Sealing Requests
According to a recent court filing, the SEC is required to submit its rebuttal to Ripple’s motion to seal by May 20. Ripple had initially filed this motion on May 13 in compliance with the set deadline for both parties to request document sealing related to the remedies phase.
In its May 13 filing, Ripple disclosed its prior consultation with the SEC regarding the sealing requests. The firm mentioned that the SEC expressed consent to some of the requests while planning to contest others, indicating a potential partial agreement on Ripple’s requests.
The Commission appears to have agreed to redact certain unidentified business partners of Ripple whose affiliations are not public. However, Ripple is pursuing additional redactions beyond this, aiming to protect the identities of third parties irrelevant to the case’s outcome.
Ripple is also seeking to seal or redact specific financial documents and audited statements, emphasizing that the disclosure of such non-public information could harm the company’s competitive standing. Additionally, the firm wants confidentiality for details about its business relationships, focusing solely on negotiated financial terms.
Anticipated Changes in the Crypto Industry
Ripple’s legal issues with the SEC have been influenced by the ambiguous regulatory environment for the US crypto industry. However, a potential shift is on the horizon with the upcoming vote in Congress on the Financial Innovation and Technology for the 21st Century (FIT21) bill, aiming to introduce regulatory clarity for crypto firms.
If enacted, the bill will designate the Commodity Futures Trading Commission (CFTC) as the principal regulator for crypto assets. This transition holds significance as the SEC has historically expanded its regulatory reach over crypto matters, emphasizing enforcement actions against crypto entities.