Prosper Ask Court to Deny SEC Requests in  Ripple Case

Prosper Ask Court to Deny SEC Requests in  Ripple Case

Attorney John Prosper, a well-known authority in the Ripple vs. SEC feud, believes that the court will probably reject the SEC’s request in the lawsuit against Ripple Labs while the legal dispute between the two parties rages on.

SEC had asked that the court order Ripple to submit its 2022-2023 audited financial statements. It also requested that Ripple should submit documents showing the contracts for the transfer or sales of XRP to customers outside its employee base, as well as documents that contain the proceeds from the “XRP Institutional Sales” gotten after the filing.

Ripple’s defense gave two reasons why the court should decline the SEC’s request. The major reason is that, it stated that the SEC refused to demand those documents when the facts were open; hence, it lacks the faith to request post-complaint sales.

Prosper Predicts Court Outcome, SEC to Request  Post-complaint Documents

Recent predictions from Prosper indicate that the court would reject the SEC’s request in the Ripple lawsuit, which has sparked more heated debate among cryptocurrency enthusiasts. Ripple vigorously contests the SEC’s allegations that it carried out an unregistered securities offering through its XRP sales.

It is anticipated that the resolution of this court dispute will establish a standard for how comparable U.S. securities regulations would regard digital assets. The SEC’s move to order Ripple to provide post-complaint documents is one of the main areas of disagreement.

This action has drawn criticism and investigation from pro-XRP individuals, such as Attorney Morgan. Morgan has openly questioned the SEC’s justification for requesting further information after filing the initial complaint, highlighting the necessity of understanding the SEC’s goals.

Attorney Morgan Makes Reference to Ripple’s Latter to SEC

It is anticipated that the court would reject the SEC’s motion, which could be a blow to the agency’s efforts to get further records from Ripple. Attorney Morgan, on his X post, while commenting on Ripple’s filing, said that the SEC’s request gave rise to a curious analysis of whether every sale made after the complaint met with the Howey factors – and if it needs to be analyzed.

He also wrote that the commission is looking to find out if all the buyers were expecting some profits or hoped on Ripple’s official statement to draw their conclusions. Or a claim that his X post marched with the letter Ripple had sent to  Magistrate Netburn.

In the court filing on January 19, 2024, Ripple moved against the SEC’s intention to compel it into some post-complaint discovery. Ripple’s attorney has been encouraging Judge Analisa Torres to rule the case in their favor because of what he termed an “irrelevant argument” by the commission.

Prosper Accuse SEC for Inciting the Court Against Ripple

Beyond the particulars of the Ripple case, the court’s ruling may establish a standard for how digital assets are handled under U.S. securities laws. Prosper, like most XRP followers, claims that most private companies, especially JP Morgan, are responsible for instigating the SEC to drag Ripple to court. The SEC has yet to make an official statement on this latest claim.

During the court proceedings, the SEC did not argue that Ripple’s post-complaint discovery was an important remedy, yet took the position that the said post-complaint was totally unimportant in the case. The motion was sorted out after Ripple affirmed.  he court also affirmed that SEC demands are not important and don’t affect the court’s resolution.

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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