In the ongoing legal battle between Ripple Labs Inc. and the United States Securities and Exchange Commission (SEC), the latest development sees Ripple filing a motion on January 11 seeking a two-day extension to respond to the SEC’s motion to compel.
SEC Moves To Compel Ripple’s Document Disclosure
In a filing dated January 11 in the U.S. District Court for the Southern District of New York, the SEC has moved to compel Ripple to produce specific documents linked to its enforcement action. The regulatory body is seeking financial statements spanning the years 2022 to 2023, along with “post-Complaint contracts governing ‘Institutional Sales.'”
The SEC’s request is honing in on contracts related to institutional sales following a pivotal July 2023 ruling. In that judgment, a judge concluded that XRP qualified as a security exclusively when sold to institutional investors. The SEC argues that the information contained in these contracts is essential for the court to determine the appropriate relief, such as injunctions and civil penalties, and to establish the amount of any civil penalties.
Ripple’s Response
In response to the SEC’s motion to compel, the company has submitted a Motion for Extension of Time, seeking an additional two days to formulate and present its response. The deadline for Ripple’s response would ordinarily be on January 17, 2024, but the company is requesting an extension until January 19, 2024. According to the filing, this extension is the company’s first request for additional time in this legal proceeding.
The letter addressed to Judge Sarah Netburn reads, “Ripple respectfully requests an additional two business days to fully respond to the Motion to Compel.” Furthermore, Ripple has signaled its consent to the SEC’s request that, if necessary, its reply should be submitted on or before January 24, 2024. This collaborative approach between Ripple and the SEC, at least regarding timeline extensions, showcases a level of cooperation amid the legal wrangling between the two parties.
The crypto community remains keenly attentive to the outcome of this high-stakes legal dispute, which carries implications for the regulatory landscape of the broader crypto industry. The extension request reflects the complexity and significance of the case as both parties navigate the intricate legal terrain surrounding XRP’s classification and regulatory obligations.
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