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Debashree Patra
Debashree Patra
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- May 21, 2024 07:23 UTC
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SEC Fights to Unseal Ripple’s Financial Data for XRP Penalty Assessment
SEC challenges Ripple's attempt to seal financial data, arguing transparency is needed to assess penalties.
The court will decide what information can be sealed. This may delay the final judgement.
XRP price rose but may remain low due to regulatory uncertainty. Some investors are selling XRP in response to the SEC's actions.
The ongoing clash between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken a new turn as the SEC challenges Ripple’s bid to keep certain business details under wraps. The SEC opposes Ripple’s request to keep information about discounts offered to big XRP buyers confidential.
Renowned defense lawyer James K. Filan sheds light on the SEC’s stance, revealing its position on Ripple’s broad sealing request.
Here’s more about this development.
SEC Calls for Transparency
Ripple previously sought to seal exhibits related to its business dealings, especially details about discounts given to big XRP buyers. However, the SEC argues that sharing this info is vital for transparency and for the court to understand the case fairly.
In response, the SEC says Ripple’s sealing requests would hide important details from the public eye, crucial for the court to decide on the remedies. The SEC specifically opposes Ripple’s move to hide financial info about these discounts, saying transparency is key for deciding penalties. They also oppose hiding certain financial statements, saying they’re crucial for the court’s decision-making.
Confidentiality Claims Challenged
The SEC argues that Ripple hasn’t shown how publicizing this info would cause significant harm. They also say some of Ripple’s financial details are old news and already known to the public.
While the court will decide what gets sealed, there’s talk in the XRP community about possible delays in the final judgment. Part of this is due to discussions about Andrea Fox, a key SEC accountant, and her role in the case. This unresolved issue could drag out the legal battle, making it even more complex.
Market Reaction
Despite the legal drama, XRP saw a 5% jump, hitting $0.535, with trading volume spiking, showing increased trader interest. But economists warn that uncertain regulations might keep prices down. Reports say big investors, known as “whales,” are selling XRP holdings due to the SEC’s opposition to Ripple’s sealing request.
The SEC’s opposition mainly targets Ripple’s financial data, rather than XRP’s status itself. This suggests the SEC is more concerned about penalties than challenging the cryptocurrency’s classification, offering some hope for Ripple in its legal battle.
Also Check Out: Ripple vs SEC Nears Climax: Should You Buy XRP Now?
The Ripple vs. SEC saga continues! Buckle up for the next chapter.
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