In the seemingly endless battle between the SEC and Ripple, the crypto world holds its breath. A recent twist throws a wrench into the case: the SEC fights to expose evidence Ripple desperately wants to keep hidden.
What secrets could Ripple be trying to bury? And will the SEC’s move tip the scales of justice?
Read on to find out the latest developments in this high-stakes crypto lawsuit.
Legal expert Bill Morgan didn’t mince words in criticizing the SEC’s latest move. Taking to social media, he not only slammed the SEC’s stance but also pinpointed glaring inconsistencies in their arguments, especially regarding Ripple’s On-Demand Liquidity (ODL) contracts.
According to Morgan, the SEC’s claim that none of the discounted sales to institutions were ODL contracts was a significant misstep. He clarified that ODL contracts require customers to buy XRP at prevailing market rates, using it in transactions instead of just holding it as an investment.
This difference strikes at the core of the SEC’s argument that Ripple’s institutional contracts should be seen as investments.
The SEC’s rebuttal to Ripple’s motion focuses on the principles of public interest and transparency. Stressing the historical importance of public access to judicial documents, the SEC cited legal precedents to support its stance.
“The common law right of public access to judicial documents is firmly rooted in our nation’s history,”
SEC, citing Lugosch v. Pyramid Co. of Onondaga.
The SEC argued that the financial information Ripple seeks to redact is essential to the court’s determination of appropriate remedies. This includes data on Ripple’s current assets, sales, revenues, expenses, and investor discounts.
Ripple Continues Pushing Back
Ripple’s defense, however, faced skepticism from the SEC. The agency dismissed Ripple’s arguments as mere speculation lacking substantial evidence. Furthermore, the SEC argued that the financial information Ripple wishes to hide, although outdated, remains relevant to the case’s resolution and poses no significant harm if disclosed.
Morgan highlighted how the SEC admitted none of the discounted sales to institutions involved in ODL contracts. This distinction is important because it fits exactly with the SEC’s admission that ODL contracts do not have the features that made other institutional buyer contracts investment contracts, as summarized by Judge Torres in the summary judgment.
“The ODL contracts require ODL customers to purchase XRP at market prices and to use the XRP in ODL transactions and agree not to hold them as investments. It remains a mystery why Judge Torres lumped them in with the other contracts with Institutions,”
Predict the outcome: Will the SEC prevail, or will Ripple see a win?
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