Ripple Challenges SEC on XRP Price Suppression Claims

Ripple Challenges SEC on XRP Price Suppression Claims

Attorney Bill Morgan highlights Ripple’s recent filing in the SEC lawsuit, addressing claims about the impact of On-Demand Liquidity (ODL) sales on XRP’s price. The San Francisco-based crypto payments company, Ripple Labs, has filed a reply letter to support its motion to seal exhibits related to the SEC’s motions for remedies and judgment.

Attorney James K. Filan shared Ripple’s latest filings on social media platform X. Previously, the U.S. SEC opposed Ripple’s omnibus sealing motion on May 21, arguing that sealing requests might hide vital information from the public, potentially relevant to the court’s decisions on remedies.

Ripple’s Latest Filing

In the latest filing, Ripple stated it had addressed several of the SEC’s arguments in its opposition to the regulatory agency’s remedies-related opening brief. However, it specifically responded to two arguments from the SEC’s May 21 opposition brief. Firstly, Ripple argued that the SEC incorrectly claims details about its current financial status are relevant to the court’s determination on remedies.

Related article: Ripple v. SEC: The Key Factor Delaying Final Judgment

Ripple clarified it is not arguing about its inability to pay the penalty. Instead, it aims to seal confidential business information to protect its interests and those of third parties. Ripple remarked, “The SEC should not force disclosure of our highly sensitive financial information by raising baseless arguments, especially when the court can reject those arguments without considering the confidential facts.”

Related article: Ripple CTO to Unveil Crucial New Product at Consensus 2024

Secondly, Ripple criticized the SEC’s claim that its past contracts are irrelevant due to changes in its XRP sales method. The company cited CFO Jonathan Blitch’s declaration, emphasizing that revealing these confidential contracts could give future counterparties leverage.

Ripple Dismisses Claim About XRP Price Suppression

Additionally, Ripple contended that its XRP sales no longer meet the characteristics of “institutional sales” as determined at summary judgment. The company stated, “Ripple’s current sales of XRP to customers for use in connection with Ripple’s ODL product do not have any of the relevant terms of the over-the-counter contracts, such as discounts offered to sophisticated counterparties.”

Interestingly, pro-XRP lawyer Bill Morgan highlighted the significance of Ripple’s argument about ODL-related sales. He noted that Ripple’s statement indicates the company does not suppress XRP’s price via its ODL-related sales. Critics have accused Ripple of suppressing XRP’s price through continuous sales for ODL purposes. For context, Ripple unlocks 1B XRP from escrow monthly, re-locking 80% while possibly selling 20% to ODL clients, thus increasing XRP’s circulating supply.

Critics claim Ripple indirectly dumps XRP on retail investors via these ODL-related sales, impacting the coin’s price negatively. However, Attorney Morgan emphasized that Ripple’s argument shows the company does not dump XRP on retail investors nor suppress the coin’s price. He noted that Ripple’s statement indicates ODL sales have zero impact on XRP’s price action.

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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