SEC targets Ripple’s foreign partners after failing to access financial records from executives
Amid Ripple’s recent victory in its lawsuit against the US Securities and Exchange Commission, the financial watchdog is trying a different path to nail Inc. and its operators.
A letter was sent to Judge Jude Sarah Netburn yesterday by attorneys representing Ripple’s executives, CEO Brad Garlinghouse and co-founder Chris Larsen, claiming that the SEC is trying to get documents from their foreign partners. According to the letter, the Commission made at least 11 Memorandum of Understanding (MoUs) requests for other foreign regulators requesting documents from Ripple’s foreign partners.
Ripple asserts that the SEC is currently trying to bully its partners to cut ties with them. They commented:
Since the SEC certainly knows (and perhaps this is the goal of the SEC), getting involved with local regulators and trying to cite the regulatory bodies’ mandate is not only incorrect, but rather also becomes a threatening tactic that prevents those entities from continuing to do business with Ripple.
In the future, Ripple is asking the court to prevent the Commission from making any findings beyond its jurisdiction. The blockchain project also accused the SEC of violating federal rules by refusing to fully disclose its communications with other foreign regulators.
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