The U.S. Securities and Exchange Commission (SEC) opposes Ripple’s request to conceal details about its XRP sales, including discounts given to institutional buyers. This update was shared by defense lawyer James K. Filan.
Ripple recently filed a motion to seal certain exhibits that reveal confidential business information, particularly those related to its XRP sales. Specifically, Ripple aimed to keep its financial statements, discounts offered to institutional buyers, and other sensitive business details confidential.
SEC’s Opposition to Ripple’s Motion
The SEC responded by filing an opposition to Ripple’s sealing motion. The regulatory body partially opposed the motion, arguing that Ripple has not sufficiently justified why the information should remain confidential. The SEC emphasized that court filings should generally be public, and Ripple’s attempt to redact significant information undermines transparency. The SEC stated, “Ripple invites the public to form opinions about the merits of the SEC’s position. [Thus,] it cannot simultaneously hide from the evidence on which that position is based.”
Related article: Ripple-SEC Lawsuit: Today’s Developments and Future Steps
The SEC argued that some of Ripple’s sealing requests would hide critical information needed for the court’s remedies litigation. While the SEC did not fully oppose sealing Ripple’s recent financial statements, it urged the court to disclose financial figures and terms used to justify remedies requests. The SEC maintained that public understanding of these facts is crucial for general deterrence related to civil penalties.
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Furthermore, the SEC objected to Ripple’s request to conceal the financial terms of discounts offered to institutional buyers of XRP. The SEC claimed that Ripple seeks to hide discriminatory pricing practices. Ripple argued that making discount terms public could harm its negotiating position with counterparties, but the SEC countered that Ripple failed to show how old discounts would cause substantial harm, especially since it claims not to have offered discounts in years.
SEC’s Focus on Financial Statements
The SEC also objected to redacting certain financial statements, including Ripple’s current assets amount, revenue from non-XRP sales, and post-complaint ODL-related sales of XRP. These data points are relevant to determining Ripple’s penalty and injunctive relief. The court will decide which exhibits and documents require sealing. Once the decision is made, the parties will need to publicly file redacted versions within 14 days.
Meanwhile, XRP community figure Ashley Prosper speculated that the decision about whether Andrea Fox, a top-level SEC accountant, is an expert or summary witness, might delay Judge Torres’ final judgment.
The SEC submitted Fox’s declaration to support its opening remedies-related brief, but Ripple argued against it, asking the court to exclude her testimony since it was not provided during discovery. The court’s decision on this matter could indeed affect the timeline of the case.
