The U.S. Securities and Exchange Commission (SEC) has filed a cross-motion to reject Ripple’s motion to seal and redact the discovery documents related to the ongoing disagreement concerning remedies. The SEC is demanding that Ripple present its latest balance sheet, recent sales of its coins, revenues, expenses, and discounts given to its clients.
In its latest motion, the SEC stated that Ripple had not rebutted the prejudiced presumption that these documents must be disclosed to the public. While citing the SEC’s earlier sealing and redaction positions, Ripple needs to underscore that it was in the given context of filings. Further, the SEC highlighted the fact that Ripple has been found in a court of law to have engaged in an unregistered sale of investment contracts to institutional investors without the required public notices.
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Ripple Faces SEC Demand for Transparency
The SEC claims that it is peculiar for Ripple to seek to withhold its financial and securities sales information as such information is at the heart of all discussions regarding remedies. While the SEC states that Ripple may be able to redact certain financial statements, it argues that figures or terms of the contract related to the remedy request are not privileged. The agency stressed that dissemination of this information is essential for comparing the remedies sought and awarded with Ripple’s actual financial state while keeping general deterrence in mind.
In its filing, the SEC stressed that its sealing and redaction objections only apply to information relevant to the court decision. The agency also aims to clarify Ripple’s financial condition to provide a reasonable assessment of the remedies.
Ripple has claimed that releasing these files may damage its commercial operations. Nevertheless, the SEC argues that it does not favor the elimination of just a small amount of financial information and underscores the significance of the public’s right to attend to promote openness in proceedings.
Overall, the SEC’s decision to reject Ripple’s effort to file the financial details under seal shows how critical the concept of transparency is in the legal system. By utilizing financial information, the SEC seeks to guarantee a rational and objective assessment of the remedies demanded from Ripple, which highlights the importance of public access to such essential data in such crucial actions.
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