Ripple wins access to SEC discussions on defining crypto assets as securities
Ripple Labs has been granted access to the United States Securities and Exchange Commission’s documents “expressing the agency’s interpretation or views” on the subject of crypto assets.
As per Law360, U.S. Magistrate Judge Sarah Netburn granted the defendants’ motion “in large part,” determining that SEC memos concerning crypto are likely discoverable.
Netburn asserted staff-to-staff email communications do not need to be produced and also allowed for the SEC and Ripple to raise disputes with the ruling.
In December, the SEC filed a lawsuit alleging Ripple Labs, its CEO Brad Garlinghouse, and chairman Christian Larsen, had raised $1.38 billion via organizing an unlicensed security offering in August 2013.
Ripple has challenged the SEC’s suit, claiming that XRP is akin to Bitcoin and Ether, both classified as commodities by the SEC, in order to criticize the eight years taken for the agency to file its complaint against Ripple.
The Law360 reports that Garlinghouse’s counsel, Matthew Solomon, putting his faith that it may be “game over” for the SEC’s suit should they find evidence the regulator has deemed XRP akin to BTC or ETH, noting the SEC’s regulatory purview does not extend beyond securities.
Alongside the SEC, taking eight years to file its complaint against Ripple, the firm’s lawyers also believe they can undermine the SEC’s claims should be able to produce documentation showing contradictory determinations as to the regulator’s classification of XRP.
“We need this discovery to defend ourselves,” Solomon stated.
However, Dugan Bliss, the SEC counsel has criticized the defendants for seeking to put the commission “on trial” by auditing its internal deliberations rather than defending its allegedly illicit actions, stating:
“The actions of the promoter are what need to be the focus here.”
During the proceedings, judge Netburn noted remarkable public interest in the hearing, with over 500 individuals having blown up through a public phone number to observe the case. Reportedly, the Judge also warned an individual for rebroadcasting the audio from the hearing in violation of New York regulations. Said: “Whoever is engaging in this conduct may be subject to criminal sanctions.”
The XRP token is rising up once again since the start of April and as of now, it has passed the $1 mark previously seen in March 2018.