• Ripple’s recent motion in the SEC lawsuit aims to seal confidential business information, countering claims of XRP price suppression.
  • Pro-XRP attorney asserts Ripple’s ODL-related sales do not negatively impact XRP’s market value.

Ripple Labs, the renowned crypto payments company based in San Francisco, has taken a decisive step in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). In a recent motion, Ripple aims to seal exhibits related to the SEC’s motions for remedies and judgment, a move that has sparked significant interest within the crypto community.

Attorney James K. Filan, a prominent figure in the Ripple vs. SEC case, shared the latest filings on social media platform X, keeping the public updated on the evolving legal saga. The SEC had previously opposed Ripple’s omnibus sealing motion on May 21, arguing that such actions could obscure crucial information from the public, potentially influencing the court’s decision on remedies.

In its latest filing, Ripple addresses these concerns head-on. The company refutes the SEC’s claim that its current financial status is relevant to the court’s determination on penalties. Ripple asserts that its motion to seal is not about its ability to pay but about protecting highly confidential business information. This protection is crucial not only for Ripple but also for its third-party partners.

“The SEC should not be able to force disclosure of Ripple’s highly sensitive confidential financial information merely by raising arguments that have no basis, especially where the court can reject those arguments without considering any of the highly confidential facts,” Ripple stated.

Furthermore, Ripple criticized the SEC’s assertion regarding the irrelevance of past contracts, arguing that their method of selling XRP has evolved. The company referenced a declaration from its CFO, Jonathan Blitch, emphasizing the confidentiality of these contracts and the potential leverage future counterparties could gain from knowing past contract terms.

Ripple also made it clear that its current sales of XRP do not align with the characteristics of “institutional sales” as previously determined by the court. “Ripple’s current sales of XRP to customers for use in connection with Ripple’s ODL product do not have any of the relevant terms of the over-the-counter contracts, such as discounts offered to sophisticated counterparties,” the company clarified.

Pro-XRP lawyer Bill Morgan highlighted the importance of Ripple’s stance on ODL-related sales, noting that it counters accusations of price suppression. Critics have long accused Ripple of manipulating XRP’s price through its sales for On-Demand Liquidity (ODL) purposes. They argue that the monthly unlocking of 1 billion XRP, with 20% potentially sold to ODL clients, increases XRP’s circulating supply and negatively impacts its price.

However, Morgan pointed out that Ripple’s argument suggests otherwise. According to him, Ripple does not dump XRP on retail investors or suppress its price through ODL sales. He emphasized that Ripple’s statement indicates ODL sales have zero impact on XRP’s market value.

This latest development is a significant move in Ripple’s ongoing battle with the SEC, as the company continues to defend its practices and protect its business interests. The crypto world keenly watches this legal battle, anticipating its potential implications for the broader market.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.