Ripple’s lawyers have been granted access to scrutinize the SEC’s documents disclosing the regulator’s “interpretation and views” of Bitcoin and Ethereum.
April 7, 2021 | AtoZ Markets – Ripple Labs has been granted access to US Securities and Exchange Commission (SEC) documents that “express the agency’s interpretation or views” on the subject of crypto assets.
Ripple CEO Brad Garlinghouse expressed his satisfaction with this development.
Today was a good day.— Brad Garlinghouse (@bgarlinghouse) April 6, 2021
According to Law360, Sarah Netburn, the US magistrate judge, granted the defendants’ motion “in large part”, determining that SEC minutes or memoranda on cryptocurrencies are likely to be reviewed. Netburn stated that it is not necessary to produce email communications between the two personnel.
Netburn also allowed the SEC and Ripple to raise disputes with the ruling.
Last December, the SEC filed a lawsuit alleging that Ripple Labs, its CEO Brad Garlinghouse and President Christian Larsen raised $1.38 billion through an unauthorized offering of securities in August 2013.
Ripple has refuted the SEC’s lawsuit, claiming that the XRP token is similar to Bitcoin or Ethereum, both of which have been classified as commodities by the SEC , in addition to criticizing the eight years it took the agency to file its lawsuit against Ripple.
Law360 reports that Garlinghouse’s attorney, Matthew Solomon, believes it may be the “game over” for the SEC’s lawsuit if they find evidence that the regulator has deemed XRP to be similar to BTC or Ether, noting that the regulatory environment of the SEC does not extend beyond securities.
Given that it took the SEC eight years to file legal action against Ripple, the firm’s attorneys also believe they can undermine the SEC’s claims if they could produce contradictory documentation as to the regulator’s ranking of XRP.
“We need to review the documents to defend ourselves, ” Solomon said.
However, SEC attorney Dugan Bliss has criticized the defendants for trying to take the commission “to trial” by scrutinizing their internal deliberations, rather than defending their alleged wrongful actions, stating:
“The promoter’s actions are what should be the center of attention here.”
During the process, Judge Netburn noted great public interest in the hearing, with more than 500 people dialing through a public phone number to follow up on the case. The judge also warned one person for rebroadcasting the audio of the hearing in violation of New York regulations.
“Whoever is carrying out this conduct may be subject to criminal penalties,” the judge said.
On April 6, the lawyer Jeremy Hogan, who is following the case with interest, turned to Twitter to share an order to cease and desist 2016 led to a then advisor Ripple Labs described the firm as a “company digital currency”.
(1/2) I am prepping for the SEC v. Ripple hearing and did a deep-dive into some docs, and LOOK WHAT I FOUND. It's the SEC stating in a public document "…the digital CURRENCY company called Ripple Labs." (top of pg.3)https://t.co/dFAtp8kiqa— Jeremy Hogan (@attorneyjeremy) April 6, 2021
(1/2) I am preparing for the SEC hearing against Ripple and did a thorough review of some documents, and LOOK WHAT I FOUND. It’s the SEC stating in a public document “… the digital CURRENCY company called Ripple Labs.” (top of page 3)
“The SEC must now explain to the court how a ‘digital currency’ was transformed into a ‘digital security,'” Hogan added.
The price of XRP has skyrocketed this month despite demand from the SEC, with the token posting a nearly 100% rally since the beginning of April. XRP is up about 20% in the last 24 hours and is currently trading at $1.08.
Think we missed something? Let us know in the comment section below.