Attorney Bill Morgan says the recent filing from Ripple in the SEC lawsuit addresses claims about the impact of ODL-related sales on XRP price.
San Francisco-based crypto payments company Ripple Labs has filed a reply letter to further support its motion to seal exhibits relating to the SEC’s motions for remedies and judgment.
As usual, Attorney James K. Filan shared Ripple’s latest filings on social media platform X.
#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed a reply letter in further support of its Motion to Seal documents in connection with the @SECGov’s Motion for Judgment and Remedies. pic.twitter.com/NeuFZII1m8
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 29, 2024
Recall that the U.S. SEC opposed Ripple’s omnibus sealing motion on May 21, arguing that the sealing requests could conceal vital information from the public, which might be relevant to the court’s determination on remedies.
In particular, the SEC requested that the court reject Ripple’s request to seal financial figures and terms used to determine and justify the remedies requests. The regulatory agency also opposed Ripple’s demand to seal the financial details of the discounts offered to institutional buyers of XRP.
Ripple’s Latest Filing
In the latest filing, Ripple emphasized that it had already addressed several of the SEC’s arguments in its opposition to the regulatory agency’s remedies-related opening brief. However, it responded to two arguments the SEC raised in its May 21 opposition brief.
Ripple contends that the SEC incorrectly asserts that details regarding its current financial status are relevant to the court’s determination on remedies. The company clarified that it is not arguing about its inability to pay the measured penalty but instead pushing to seal highly confidential business information to protect its interests and those of third parties.
“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,” the company remarked.
Secondly, Ripple also criticized the SEC’s assertion that its past contracts are irrelevant due to its alteration in the method of selling XRP.
The company referenced the declaration of its CFO, Jonathan Blitch, which emphasized the confidentiality of these contracts and how future counterparties could gain leverage from learning about the negotiated terms of past contracts.
Additionally, Ripple contended that its XRP sales no longer meet the characteristics that the court determined were “institutional sales” at summary judgment.
“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,” Ripple added.
Ripple Dismisses Claim About XRP Price Suppression
Interestingly, pro-XRP lawyer Bill Morgan highlighted the significance of Ripple’s argument about ODL-related sales. Attorney Morgan noted that the statement shows Ripple does not suppress XRP price via its ODL-related sales.
It bears mentioning that critics have accused Ripple of suppressing XRP’s price through its continuous sale of XRP for ODL purposes. For context, Ripple unlocks 1B XRP from escrow on a monthly basis. While the firm re-locks 80% of these coins, 20% remain unlocked and are possibly sold to ODL clients, thus increasing XRP’s circulating supply.
According to critics, Ripple has been indirectly dumping XRP on retail investors via these ODL-related sales, a move they believe has impacted the coin’s price negatively.
However, Attorney Morgan noted that Ripple’s argument indicates that the company does not dump XRP on retail investors nor suppress the coin’s price.
He emphasized that Ripple’s statement shows that ODL sales have zero impact on XRP price action.
Thanks James.
Ripple points out what by now should be obvious. Sales of XRP to ODL customers do not have any of the terms the Court found relevant in deciding over the counter contracts were investment contracts such as price discounts. Ripple offers no discounts to ODL… https://t.co/3S2jZee03u pic.twitter.com/vruJTuHL2S
— bill morgan (@Belisarius2020) May 29, 2024
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