Ripple SEC Lawsuit: SEC Defies Sealing Details, “Ripple Will Largely Lose the Motion”

Ripple vs SEC lawsuit: The U.S. Securities and Exchange Commission (SEC) has opposed in part to Ripple’s motion to seal and redact evidence related to remedies briefing and documents. Notably, the SEC urges the court to grant an order to make public Ripple’s business details in the remedies briefing filed by the SEC on March 22.

Earlier, Ripple requested the court to keep the financial reports, details on post-complaint XRP institutional sales, and other confidential details sealed and redacted given the high risks to Ripple Labs. However, pro-XRP lawyer Bill Morgan believes Ripple will largely lose the motion to seal.

SEC Claims to Make Ripple’s Record Public

The U.S. SEC has filed its response to Ripple’s motion to seal and redact and opposes in part to the motion, as per the latest court filing revealed on May 21. The SEC claims that Ripple’s request to “conceal financial and securities sales information” from the public is unlawful and the material at issues such as financial figures and other details are fundamental to requested remedies.

The SEC claims that Ripple’s redaction requests would hide public information key to the court’s decisions in the remedies phase and understanding of the public to penalties amount. The details include amount of Ripple’s current assets (relevant to penalty amount), amount of recent sales (injunctive relief and penalties), revenues & expenses (disgorgement), and the size of discounts to some institutional investors (investor harm).

The regulator also argues that Ripple failed to show reasonable evidence of how publicly available information would result in substantial injury warranting protection. It further added that the financial details and other information are old and stale, as well as some evidence is already available to the public and Ripple’s reliance on past sealing approvals by the court in the current matters is unavailing.

Commenting on the outcome of the motion, pro-XRP lawyer Bill Morgan said “Ripple will largely lose the motion to seal.” He added that the SEC clarified none of the sales to institutions with discounts were ODL contracts, but still seek a permanent injunction to stop ODL sales. He thinks the SEC knows the ODL contracts are not investment contracts.

Also Read: Ripple Case Update — Judge Sets Public Zoom Hearing on Summary Judgment & Testimony

XRP Price Jumps, Whales Selling Holdings

XRP price climbed 5% in the past 24 hours, with the price currently trading at $0.535. The 24-hour low and high are $0.507 and $0.542, respectively. Moreover, the trading volume has increased by more than 150% in the past 24 hours, indicating a rise in interest among traders.

The recent rally came as the odds of spot Ethereum ETF approval improved to 75% as the SEC asked exchanges to update 19b-4 filings. However, analysts believe the price will continue to trade at lower levels for this year as triangle pattern breakout is key for a substantial recovery in prices.

Meanwhile, whales have sold some holdings in XRP as the SEC files its opposition to Ripple’s request to seal the financial details and XRP institutional sales information.

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