The U.S. Securities and Exchange Commission (SEC) has requested that Ripple Labs Inc. provide additional documents related to its financial health and recent sales activities. The SEC's request comes ahead of the upcoming trial in the ongoing lawsuit between the two parties.

In a filing with the U.S. District Court for the Southern District of New York, the SEC stated that it needs access to Ripple's financial statements from 2022 and 2023 to assess the company's financial condition and determine the appropriate penalties if Ripple is found to have violated securities laws.

The SEC also requested access to Ripple's records of "Institutional Sales" contracts that were entered into after the company's initial legal issues arose. These contracts are considered relevant to the SEC's case as they may provide evidence of Ripple's knowledge of its potential legal obligations.

Ripple Labs has objected to the SEC's requests, arguing that the documents are not relevant to the case and that the SEC is simply attempting to gather information that could be used to disadvantage the company during the trial.

The SEC's request has reignited the tension in the Ripple lawsuit, which has been ongoing since 2020. In July 2023, U.S. District Judge Analisa Torres ruled that the SEC had failed to provide sufficient evidence to show that XRP, the cryptocurrency developed by Ripple, was a security. However, the SEC is seeking to overturn this ruling, and the trial is set to begin on April 23, 2024.

The SEC's request for additional documents suggests that the agency is preparing to take a more aggressive stance in the case. It remains to be seen whether Ripple will be able to successfully resist the SEC's demands.

The ongoing lawsuit between the SEC and Ripple has significant implications for the cryptocurrency industry. A victory for the SEC could have a chilling effect on the development and adoption of cryptocurrencies, while a victory for Ripple could lead to increased institutional investment in the space.