A federal judge has approved a motion allowing the United States Securities and Exchange Commission (SEC) to request specific financial documents from Ripple. Magistrate Judge Sarah Netburn, in a ruling on February 5, granted the SEC’s motion, requiring Ripple to produce financial statements from 2022 to 2023 and contracts governing “institutional sales,” a crucial aspect in determining whether XRP qualifies as a security. The post-complaint contracts could provide insights for the SEC to counter Ripple’s claims of compliance following the initial filing.
Judge Netburn’s decision marks a significant development in the ongoing legal battle between Ripple and the SEC. The request for financial documents underscores the SEC’s efforts to strengthen its case against Ripple and its executives. Ripple’s compliance with the court order will likely influence the outcome of the trial scheduled for April. This ruling emphasizes the importance of transparency in regulatory investigations involving cryptocurrency offerings, highlighting the complexities surrounding the classification of digital assets. (Source: Cointelegraph)