The court has denied Ripple Labs’ motion to compel the US SEC to produce records of its employees’ crypto transactions.
A federal judge in New York has rejected Ripple’s petition to disclose cryptocurrency transactions by employees of the US Securities and Exchange Commission (SEC).
Ripple filed a petition on August 27, requesting information about the acquisition of bitcoin, ether, and XRP by SEC employees. The regulator accuses the company of selling over $1.3 billion in unregistered securities in the form of its XRP token.
According to Ripple, lawyers met with the SEC at least four times to obtain such information “without any progress.” Ripple was satisfied with “anonymized documents reflecting trading decisions, or the same information in general.”
Judge Sarah Netburn, however, took the position of the regulator in this matter.
“Since the pre-lawsuit processes do not take into account the status of the asset as a security, Ripple has not demonstrated that such tailor-made trading decisions are relevant to the issues in this case,” she ruled.
According to SEC rules, employees must obtain permission before entering into securities transactions, however, until January 2018, the commission did not have any instructions regarding cryptocurrencies. On March 9, 2019, the SEC officially launched an investigation into the Ripple case, while simultaneously banning subordinates from trading XRP.
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