SEC Wants To Make Ripple’s Financial Records Public
The Securities and Exchange Commission has submitted its opposition to Ripple’s motion to seal some financial documents, according to a May 20 filing.
The SEC contends that Ripple’s request to “conceal financial and securities sales information” from the public is unlawful and that the material in question such as financial figures and other details are essential to requested remedies. Citing Lugosch v. Pyramid Co. of Onondaga, the regulator also stressed the historical significance of public access, particularly in cases of regulatory enforcement. “The common law right of public access to judicial documents is firmly rooted in our nation’s history,” said the SEC.
The suit, which was lodged in late 2020, revolves around the SEC’s assertions that Ripple conducted an unregistered securities offering via the sale of the XRP cryptocurrency. Ripple scored a partial win in July 2023, when Judge Analisa Torres found that XRP was not a security in itself, but that institutional XRP sales constituted investment contracts.
As per the earlier released joint schedule, Ripple, the SEC, and any third parties were expected to file letter briefs on May 20, 2024, opposing omnibus letter motions to seal. This represents the final deadline for the joint proposal decided on by both parties.
Final Clash Before Long-Awaited Verdict
While the SEC agrees to seal five exhibits, it challenges the fintech firm’s request to conceal key financial figures and contract terms noted in the remedy deliberations. This includes details that would disclose Ripple’s current financial health, the volume of recent XRP sales, and the specifics of revenues and expenses—all considered vital for assessing the company’s compliance and deciding potential penalties.
SEC also argues that Ripple failed to show reasonable evidence of how exposing the information to the public would result in significant injury warranting sealing. The agency further added that the financial records are outdated, and some evidence is already available to the public. “Stale business records cannot support the necessary finding of harm,” the SEC posited.
In terms of the next steps in the case, the crypto industry will be closely watching as Judge Analisa Torres makes her ruling on the remedies. The stakes are incredibly high, with the SEC requesting a fine of up to $2 billion. Ripple, however, contested the SEC’s “Draconian remedial requests”, suggesting that any fines should not exceed $10 million.
Although the exact time of Judge Torres’ judgment is not known, Ripple’s recent statements reveal that they expect a resolution in the coming few months.
At the time of writing, the XRP price is holding above $0.54, after gaining 6.1% on the day. XRP enthusiasts remain optimistic about the token’s future despite its recent sluggish performance. The conclusion of the Ripple v. SEC lawsuit could be the catalyst for propelling XRP to the elusive $3 milestone.

Judge Richard Jones disagreed with the Justice Department’s request to increase Zhao’s sentence. He said there was no evidence that the Binance founder was ever informed of the specific illegal activity occurring on the exchange. The judge again rejected the DOJ’s request to sentence Zhao to 36 months.
The judge thanked the prosecution for their voluminous report and forecasted a possible sentence. In many respects, Jones said he agreed with the prosecution’s opinion.

The list of claims includes $876 million in compensatory damages, $198 million in interest on the amount mentioned, and another $876 million in civil penalties.
The company’s response, outlined in a court filing dated Apr. 22, proposes a different approach: advocating for a civil penalty not exceeding $10 million.
Stuart Alderoty, Ripple’s Chief Legal Officer, suggested the company’s position in a statement on X, highlighting that the case lacks allegations or findings of recklessness or fraud.

The stablecoin will be fully collateralized by US dollar deposits, along with short-term US government treasuries and other cash equivalents, Ripple said on Thursday.
“These reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations,” Ripple said. It did not specify which firm would conduct the audits.
The move positions Ripple as a competitor to established leaders in the stablecoin market, like Tether and Circle. Notably, PayPal entered the fray last year with the launch of its own USD-backed stablecoin, PayPal USD (PYUSD), on Ethereum.

A structured timeline outlines the dance of filings and redactions:
March 22, 2024: SEC unveils its opening remedies-related brief under seal.
March 25, 2024: Parties identify necessary redactions.
March 26, 2024: SEC releases a public, redacted version of the brief.
April 22, 2024: Ripple unveils its public, redacted opposition brief, unless confidential.
May 6, 2024: SEC delivers its reply brief under seal.
May 8, 2024: SEC releases a public, redacted reply brief.
This timeline allows for motions and redaction proposals, culminating in the mandatory filing of public, redacted versions.