The SEC vs. Ripple lawsuit may last longer as both parties are still slugging it out in court
While there is hope that the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple may conclude soon, when this will be reached remains uncertain as both parties are still in court.
Ripple files a motion that undermines the SEC DPP argument, a conclusion doesn’t seem forthcoming
Many controversial observations have made the SEC’s action seem hesitant, and Ripple’s legal team has not been slow in making the points they feel are in their best interest.
It has latched onto a recent point that the SEC did not establish a deliberative process to warrant them exercising a Deliberative Process Privilege. In a current motion filed by Brad Garlinghouse’s lawyer Matthew Solomon, the fintech company has protested the SEC’s insistence on exercising a Deliberative Process Privilege (DPP) for around 37 documents.
The petition argues that the SEC has not stated that it is weighing XRP’s status. The commission has repeatedly asserted that the law is clear that cryptocurrencies like XRP are securities.
“The SEC has never attested that it commenced a policy process addressing whether to regulate digital assets as securities,” Matthew Solomon’s filing read. “Instead, the entire theory of this case turns on the SEC’s contention that no policymaking or policy process was or is necessary because digital assets like XRP are securities under 75-year old judicial precedent.”
The filing is good news for Ripple’s defense, but it poses a problem for the SEC. Attorney Jeremy Hogan, who has been watching the proceedings enthusiastically predicts that the SEC could be forced to hand over all the documents it opposes release due to its DPP.
According to Hogan, the documents likely to be released include a particularly dubious memo containing a legal analysis of XRP written by the SEC’s Division of Corporate Finance. The memo was written and distributed to members of the SEC just a day before Bill Hinman, the former director of the division, delivered his now-famous speech declaring ETH is not a security.
Meanwhile, the SEC has also filed a motion forcing Ripple to turn over the recordings of meetings. The SEC’s latest motion is a continuation of others moving towards the same goal.
While the case is tilted in Ripple’s favor, neither side has shown any interest in reaching a truce, although observers have hinted and speculated about it. Ripple has even explicitly stated that they are not considering the settlement. This was revealed by Fox Business’ Charles Gasparino, who has also been monitoring the case closely. According to Gasparino, the outcome of the case will have far-reaching consequences for the regulator’s power over the crypto industry.
Source: James K. Filan
Plus, here are the upcoming events you need to know if you’re following this lawsuit.
- Ethereum’s Joe Lubin Voiced His Support For The SEC In The Lawsuit With Ripple
- Judge Ruled That XRP Holders Cannot Act In Ripple – SEC’s Ongoing Lawsuit As Defendants