The court denied the U.S. SEC’s request for documents related to Ripple lobbying efforts
In a June 15 statement, judge Sarah Netburn denied a request by the US Securities and Exchange Commission for documents related to Ripple lobbying efforts.
This is a good sign for the fair notice defense. Judge Netburn has made clear to the SEC yet again that the focus of that defense is on the activities of the SEC and not on Ripple.
— James K. Filan (@FilanLaw) June 15, 2021
The court has denied the SEC’s request for documents related to Ripple lobbying efforts
Netburn thinks that Ripple’s lobbying efforts are not relevant, reiterating her previous stance:
“In the same vein, Ripple’s lobbying efforts regarding the status of XRP are not relevant; and any relevancy argument is outweighed by the burden of production.”
This is the latest decision after a court barred the SEC from participating in legal advice the company sought or received regarding XRP’s regulatory status last month.
Also according to an update from James K. Filan, the Individual Defendants’ Motion for Issuance of Letters of Request for International Judicial Assistance were granted.
#XRPCommunity #SEC_NEWS v. #Ripple #XRP The Individual Defendants’ Motion for Issuance of Letters of Request for International Judicial Assistance were granted. pic.twitter.com/X86SZ6zna9
— James K. Filan (@FilanLaw) June 15, 2021
The letters for international assistance, called Letters Rogatory, were just formally issued by the Court and picked up by Cleary Gottlieb Steen & Hamilton LLP and they will be served in the Central Authorities of the United Kingdom of Great Britain and Northern Ireland, the Cayman Islands, the British Virgin Islands, the Hong Kong Special Administrative Region of China, the Republic of Singapore, the Republic of Seychelles, the Republic of Korea, and the Republic of Malta.
Back in June 2020, Chris Giancarlo, a former chairman of the Commodity Futures Trading Commission, publicly declared that XRP wasn’t unregistered security. The SEC claimed that the company paid Giancarlo to publicly support its litigation position:
However, the SEC points out that he was on Ripple’s payroll:
“Ripple relies on statements that it paid that official to make to support its litigation position…Since Ripple has put at issue its purported lack of “fair notice” based on the beliefs of market participants, the SEC is entitled to test whether the supposed confusion was bought and paid for by Ripple, as opposed to a reflection of genuine market sentiment.”
Netburn also denied the SEC’s request to force production of the documents after their complaint. The request was rejected without prejudice, meaning the regulator could try again.
At the same time, the judge partially approved the SEC’s motion to proceed with additional deposits. The agency will be able to fire five more Ripple employees, including former CFO Ron Will.
As AZCoin News reported, judge Sarah Netburn has also approved the request for a 60-day extension to the discovery in the Ripple case. This is a step backward for Ripple.
Read more:
- The SEC’s Request For A 60-Day Extension Of The Discovery Deadline In The Ripple Case Has Been Granted
- While Ripple Sees A New Lawyer Join The Legal Team To Defend Brad Garlinghouse, SEC Sees One Of Its Attorneys Leaving The Battlefield