The Ripple vs . SEC legal action has the U. S. Securities and Exchanges Commission deny possession of internal documents relating to Bitcoin, Ethereum, or even XRP, as they relate to securities, a submitting on Court Listener reads.
Ripple’ s defense team considers this critical to the case by establishing how the SEC determines securities categories.
The particular Judge made a very refined ruling and now the SEC is trying to say the Determine said " none" and Ripple is saying she stated " mostly all. " The truth is, she said " some. " I think she will rule on this soon without having oral argument and smash some heads together (in a polite way). https://t.co/dLElIfznKK
— Jeremy Hogan (@attorneyjeremy) Might 3, 2021
Despite the SEC’ s pushback, Judge Netburn has ruled to authorize discovery on such paperwork. But to the exclusion of SEC-to-SEC communications. Both edges took this as a victory on their part. Reading more in to this, has the pendulum right now swung back in favor from the SEC?
“ I am going to grant, in large part, the defendant’ s motion, I believe that the discovery related to Bitcoin and Ether is relevant, ” said Netburn, adding:
“ Likely to authorize discovery both regarding exclusively Bitcoin or Azure communications as well as XRP marketing communications between the SEC and 3rd parties, and by that I was including all market participants and the other government agencies. I am not including SEC-to-SEC inner communications in that ruling. ”
The ruling doesn’ t completely go Ripple’ s way
Critical in order to Ripple’ s defense towards allegations it sold unregistered securities is establishing equivalency between Bitcoin, Ethereum, plus XRP.
Below former Director William Hinman, the SEC determined in 2018 that both Bitcoin and Ethereum were not investments. In both instances, Hinman drew attention to the decentralization associated with both networks as a factor in making that determination.
By seeking finding of documentation on the matter, Ripple hopes to determine the reason why XRP is being singled out regarding this.
Commenting on Judge Netburn’ s ruling, Attorney Jeremy Hogan stated it was a nuanced choice. The judge agreed to the discovery of communications between your SEC and third parties, but not internal documents.
The upshot for this means Ripple will get less than what they are asking for.
“ The Judge is going to tell the SEC to pull out internal memorandum regarding the security-designation position of BTC and ETH and XRP and disclose them. She will force these to disclose more than they want (which is apparently “ nothing” ) but less than Ripple is asking for. “
SECURITIES AND EXCHANGE COMMISSION’S cries foul over intervention by XRP holders
In a separate motion, the SEC is trying to prevent XRP holders through intervening in the case.
The motion to intervene led by John Deaton puts forth the point that XRP holders dropped out due to the SEC’ s i9000 filing of legal actions against Ripple. This, they say, contradicts the SEC’ ersus public statement to prevent trader harm.
The SEC filed its opposition to the motion to get involved yesterday. They put forward the argument that the motion to intervene is statute-barred. Also, adding that intervention will bring nothing new to the case.
“ Supreme Court precedent dictates that this type of interference with government observance actions is constitutionally and statutorily barred, as it intrudes on Executive Branch prosecutorial discretion, ” the filing read through.
Whilst Ripple has scored several “ mini victories” throughout the hearing stage of the legal action, the latest happenings show how the SEC has no intention associated with rolling over.
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