A U.S. federal court granted a motion from the Securities and Exchange Commission (SEC) requiring Ripple Labs to give the regulator access to its financial statements.
Federal Judge Sarah Netburn granted the SEC’s request for access to Ripple’s financial statements, filed in the U.S. District Court for the Southern District of New York. The deadline for submitting the list of required documents is February 12.
The SEC may request certain financial documents from Ripple for 2022-2023, including information about all transactions via institutional sales of XRP. The SEC’s lawyers believe this information will help prove that the company’s operations don’t comply with all established regulations.
The SEC’s case against Ripple began in 2020. Last year, the court ruled that XRP is a security only in transactions with institutional investors. After that, the SEC dismissed the lawsuit against Ripple’s executives Brad Garlinghouse and Chris Larsen, but they still sought to prove that the company acted improperly.
The next court hearing on the case is scheduled for April.
The SEC adopted several revisions to the statutes related to securities trading, effectively obliging a large number of crypto companies and DeFi projects in the U.S. to register and operate under the agency’s supervision.
