Home Blockchain Ripple And SEC File Sealing Proposal In Forthcoming Remedies Brief

Ripple And SEC File Sealing Proposal In Forthcoming Remedies Brief

Ripple And SEC File Sealing Proposal In Forthcoming Remedies Brief

Jimmy Aki

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| 3 min read

Ripple and SEC

Source: Dalle-3

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) agreed on March 19 to seal a proposal to address concerns about an upcoming remedies-related brief in their ongoing legal dispute.

The proposal was submitted to the U.S. District Court for the Southern District of New York, to restrict public access to confidential information in the brief.

Ripple & SEC to Conceal Financial Statements from XRP Community

Former Federal Prosecutor James K. Filan disclosed the details of the new development. He indicated the proposal was submitted before Judge Analisa Torres of the Southern District of New York, U.S. District Court.

Approval of this proposal by Judge Torres would seal important details in upcoming remedies-related briefings from Ripple and the broader crypto community. Some of the details include Ripple’s financial statements and post-complaint XRP institutional sales.

In the proposal, the parties outlined a timeline for filing sealed and redacted versions of the brief and accompanying materials. A redacted version of a court file refers to removing certain information before publication or release.

The SEC is expected to file its opening remedies brief under seal on March 22. This will be followed by a meeting scheduled for March 25 to discuss necessary redactions. A redacted version of the brief will be filed publicly on March 26.

Similarly, Ripple would file its opposition under seal on April 22, with a meeting to discuss redactions on April 23. A redacted version of Ripple’s opposition brief will be filed publicly on April 24.

Meanwhile, the parties had proposed sealing replies to Ripple’s remedies opposition brief. This will come with a meeting on May 7 to determine necessary redactions and the public filing of redacted versions on May 8.

To simplify the sealing process, the SEC and Ripple had suggested filing an omnibus motion to seal all materials related to the remedies brief by May 13. This would consolidate the sealing issues into a single letter instead of multiple filings.

As the lawsuit between the SEC and Ripple continues, the proposed sealing schedule balances transparency and protects confidential information.

However, crypto community predictions suggest that the lawsuit’s outcome could impact the regulatory landscape for digital assets in the U.S.

This is because issues such as classifying cryptocurrencies as securities, investor protection, and regulatory clarity are important in this case. As such, that could shape future regulatory cases and legislative efforts in the cryptocurrency market.

Overview of SEC vs. Ripple Case: Will The Outcome Affect XRP?

On December 22, 2020, the SEC filed a litigation against Ripple Labs over conducting a $1.3 billion unregistered securities offering. The litigation caused the price of Ripple’s token, XRP, to decline steeply.

The release of the Hinman documents provided insights into the SEC’s perspective on cryptocurrencies and its controversial classification of what “securities” are, however.

The release of the highly anticipated documents created relief and positive market sentiments for XRP price recovery.

In early 2023, Ripple’s Chief Legal Officer, Stuart Alderoty, downplayed the SEC’s lawsuit. He expressed confidence in the crypto firm’s ability to win the ongoing suit against the U.S. regulatory authority.

Alderoty tagged the SEC’s recent track record as a sham, as the financial watchdog recorded four defeats out of five Supreme Court cases.

There are many events that crypto communities believe could help Ripple win its legal battle against the SEC.

These include the news of the SEC’s recent backlash from the District Court of Utah and the U.S. Republican lawmakers and its controversial announcement of spot Bitcoin exchange-traded funds (ETFs) approval.

At press time, the Ripple’s token trades at $0.57, having declined 16.17% in the last seven days.

CoinMarketCap Market Data on $XRP
CoinMarketCap Market Data on $XRP

Traders and asset holders believed the unfolding of the two-year-long legal battle would shoot the XRP price to a moonshot, enabling Ripple traders to earn more profits.

While these are mere speculations, the common fact is that the asset is yet to experience a bullish run in the global crypto market.

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