In the ongoing legal battle between Ripple and the SEC, the crypto company has filed a response in support of its motion to seal documents related to the SEC’s Motion for Judgment and Remedies. The move comes amid the regulator’s request for $2 billion in penalties related to Ripple’s institutional XRP sales.
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The latest filing seeks to counter two primary arguments made by the SEC. First, Ripple disputes the claim that historical contracts are no longer relevant due to changes in the way Ripple sells XRP.
The company reports that these contracts, despite being older, contain sensitive terms that could provide undue leverage to future counterparties. Ripple asserts that while it no longer sells XRP in the same manner as it did during the period under review, the details of these past transactions remain commercially significant.
The filing emphasizes that the company no longer engages in over-the-counter transactions with characteristics that were previously considered institutional sales. The company is now focused on selling XRP for use in its On-Demand Liquidity product, which does not involve the same terms as earlier contracts. Ripple argues that disclosing the specifics of past trades would be detrimental to its current business.
Irrelevant and confidential
More to the point, Ripple denies the relevance of its current financial condition to the court’s determination of past conduct. The company contends that its financial statements from theyears after the challenged actions are irrelevant and should remain confidential.
It argues that the SEC’s request for these documents is unwarranted and that the court can make its determination without revealing sensitive financial information.
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The court’s decision on whether to grant Ripple’s motion to seal these documents is pending.
