Lawyers representing Ripple Labs, CEO Brad Garlinghouse and a co-founder, Chris Larsen, filed a motion Friday to compel the U.S. Securities and Exchange Commission to produce two sets of documents the company requested earlier this year.
- The documents relate to SEC communications with third parties regarding bitcoin, XRP or ether. Ripple is seeking to force the SEC to disclose why it came to the conclusion that bitcoin and ether are commodities, not securities like XRP.
- In December the SEC filed a complaint alleging Ripple raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. The agency is seeking injunctive relief. "We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP...,” said Stephanie Avakian, director of the SEC's Enforcement Division, in a December press release.
- On April 6 and May 6, United States Magistrate Judge Sarah Netburn of New York’s Southern District had ordered the SEC to provide the documents but the agency has yet to comply, citing relevance.
- The two sides have met independently five times to try to resolve the issue, most recently on June 1, according to the Ripple motion.
- At CoinDesk’s Consensus 2021 event last month, Garlinghouse said he felt the case had broader repercussions for how cryptocurrency is viewed in the U.S.