The battles between Ripple’s executives, Brad Garlinghouse and Chris Larsen, against the US regulatory body, SEC, intensify as the regulator makes a request, which the executives call an ‘overreach.’ The digital asset industry continues to monitor the issues between the two bodies. Some wonder what could end the battle as Ripple already lost so much to the issue.
Ripple cut partnerships with a long-term partner, MoneyGram, over the suit, and the XRP tokens had declined for several months as holders were dumping it to prevent losses. While XRPs are performing very well due to the bull market’s presence and other factors, the fact is that the victory could be short-lived if Ripple loses the court case to the regulator.
Ripple’s executives ask court to deny SEC access to their bank statements
Nowadays, many people question SEC’s authorities as many believe that the regulator does not have clear regulations, making it hard for the crypto space to follow ambiguous rules. Sources claim that the Securities and Exchange Commission’s relationship makes it hard for the body to approve some fundamental aspects of the digital asset industries, such as supporting the nation’s first Bitcoin ETF.
The body claimed that the companies’ disapproval in building a Bitcoin ETF is due to the sector being relatively new, meaning that bad players can easily manipulate it. Now, SEC requests access to the firm’s executives’ financial records, and their lawyers asked the court to deny the watchdog access to that information. The regulator wants financial records of the firm’s founders dated back to eight years due to the bodies’ ongoing legal issues.
Lawyers for Garlinghouse and Larsen sent a letter to the Southern District in New York to retract SEC’s request for the founders’ personal financial records, which the regulatory body has sent to six banks. The lawyers explained that SEC’s request for the details is a wholly inappropriate overreach.
Ripple battles with suit
The letter explained that the regulator should not be allowed access to the executives’ personal financial statements to prove that, they like other people, see money as a positive thing, according to the lawyers. The problems started in December when the regulator official filed the suit, and this shocked many people as XRP’s are popular amongst many nations globally.
The suit significantly affected the firm, and the token eventually got delisted from prominent exchanges to prevent being seen as an accomplice to Ripple’s activities. Since then, things went from bad to worse before the digital currencies eventually started appreciating based on some factors.
The regulator had revealed that the company had sold over 14 billion XRPs for over $1 billion, which violated holders’ rights as the fintech did not register the currencies as securities under the regulator.
The two founders argued that SEC does not need access to their personal bank statements as the regulator had not accused them of intermingling money from the business with their own money. The watchdog is yet to respond to this new argument, but sources find it unfair that the regulator wants access to the executives’ records without unjustified reasons.
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