US court denies SEC request for documents related to Ripple's lobbying efforts
A Judge has allowed the Securities and Exchange Commissions’ (SEC) motion for an additional two months to find the discovery in their case against Ripple and denied SEC request doc Ripple lobbying documents. It came into existence on 15th June’21. Several other SEC motions have not agreed in what others consider a weak case against Ripple overall.
The SEC’s case against Ripple-
Legally the SEC alleges that XRP is not a currency and in fact, it is a security. For this reason, the SEC alleges that several executives sold $1.3 billion in unregistered securities. Ripple claims they are being treated in another way than their peers for operating in the same space.
Ripple claims they have not ever held an ICO and disagrees with any offering of securities, or that it is involved in a single offering of XRP. For the time being, the SEC is under confidence that the development and distribution of XRP were done by Ripple in a centralized style. The SEC not only has charged Ripple Labs but however also co-founders Chris Larsen and Brad Garlinghouse with conducting the $1.3 billion unregistered securities proposing for selling XRP for the last eight years.
The judge’s comments are important and made it clear that the burden falls on the SEC as well. It indicates that the SEC’s actions or failure to act could be carried into question for which they will be responsible for XRP.
The SEC is on Trial as Well-
The SEC versus Ripple case has taken various twists and turns since the filing in December last year. The judge has made it clear that if XRP is capable of security then the onus falls on SEC on why they didn’t take any actions previously.
Magistrate Judge Sarah Netburn has rejected the U.S. Securities and Exchange Commission’s request for documents associated with Ripple's lobbying efforts. This comes after the court banned the agency from getting its hands on the legal advice the company required regarding XRP’s regulatory status last month.
In her June 15 order, the judge states that Ripple’s lobbying pains “are not relevant,” reiterating her previous stand: In the same vein, Ripple's lobbying efforts concerning the status of XRP are not relevant.
CBW - External Analyst