Ripple vs SEC Lawsuit Update as of January 25, 2024

Ripple is pushing back against the SEC’s recent filing in the ongoing XRP legal battle. This time, the spotlight is on a “factual mischaracterization” that Ripple claims could have a significant impact on the court’s decision regarding the SEC’s motion to compel additional discovery.

This is why Ripple has recently sent a letter to Magistrate Judge Sarah Netburn seeking permission to file a sur-reply to set the record straight.

Read Also: Ripple CEO Slams SEC Chair, Calls Him “Political Liability” Over XRP Lawsuit

What’s at stake?

The SEC is seeking access to Ripple’s financial statements, post-complaint contracts, and details of XRP institutional sales. On the other hand, Ripple argues that this request is burdensome and irrelevant to the case.

According to the SEC, Ripple has not presented any arguments against producing post-complaint contracts, suggesting they are readily available. However, Ripple vehemently disputes this claim, stating that it has already objected to the request due to its excessive scope and the potential for a “trial within a trial.”

The alleged misrepresentation

The regulatory body claims that Ripple produced all XRP sales contracts from 2020 to June 2023, including counterparty information, in another ongoing lawsuit. Ripple, on the other hand, asserts that this claim is false, clarifying that they only provided contracts that pre-date the SEC’s complaint in that particular case, which was filed on December 22, 2020.

Adding fuel to the fire, pro-XRP attorney Bill Morgan has expressed disbelief at the alleged mischaracterization. This raises concerns about the SEC’s tactics and lends weight to Ripple’s claims of unfair treatment.

Why the “factual mischaracterization” matter

It can potentially sway the court’s decision in favor of the SEC’s request. As a result, Ripple is seeking permission to file a sur-reply to set the record straight and ensure that the court’s ruling is based on accurate information.

This latest development places the SEC under increased scrutiny regarding the accuracy of its claims. If the alleged mischaracterization is proven, it could damage the SEC’s credibility and potentially weaken its case against Ripple.

Read Also: SEC Chair Gensler’s Contrasting Views on XRP and Ripple On-Demand Liquidity (ODL)

Opinions on this development are divided. Some see it as a potential turning point in the lawsuit, while others view it as a delay tactic employed by Ripple. Regardless, it injects a new layer of intrigue into the already complex legal battle, keeping the crypto community on the edge of their seats.

This ongoing tension between Ripple and the SEC highlights both sides’ fierce battle to defend their positions. The outcome of this lawsuit carries significant implications for the entire crypto industry, as it sets a precedent for future regulatory actions. The crypto world eagerly awaits the resolution of this high-stakes clash.

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