- Judge ruled that Ripple must disclose financial records from 2022-2023 and answer questions about revenue from institutional XRP sales in ongoing SEC lawsuit
- Lawsuit centers around whether XRP is an unregistered security; Ripple scored partial win last year when judge said retail XRP sales weren’t securities
- Ripple CEO criticized SEC as “very hostile” and slammed SEC Chairman’s approach to crypto regulation amid ongoing legal battle
The SEC-Ripple legal battle continues with the latest court ruling requiring Ripple to disclose financial documents. This long-running lawsuit centers around whether XRP constitutes an unregistered security.
Judge Sides with SEC in Demand for Ripple’s Financial Statements
In a Monday court filing, Judge Sarah Netburn sided with the SEC and ordered Ripple to produce financial records from 2022-2023. Ripple must also answer questions about the amount of revenue received from institutional XRP sales. Ripple has argued these documents are highly confidential, but the judge rejected this claim.
Background on Ripple’s Legal Issues with the SEC
Ripple, the company behind the XRP cryptocurrency, has been battling the SEC since 2020 when the regulator filed a $1.3 billion lawsuit alleging Ripple sold XRP as unregistered securities. Last year, Ripple scored a partial win when a judge ruled retail XRP sales were not securities. However, $728 million worth of institutional sales contracts did qualify as unregistered securities.
Ripple CEO Criticizes the SEC
Last month, Ripple CEO Brad Garlinghouse slammed the SEC as “very hostile” and criticized Chairman Gary Gensler’s approach to crypto regulation. This latest court order shows the SEC continuing to pressure Ripple through legal means.
The outcome of this high-profile lawsuit could have major implications for the status of XRP and the broader crypto industry. But for now, the back-and-forth legal sparring drags on.
