The US Securities and Exchange Commission (SEC) has been interrupted from accessing the legal concerns of Ripple regarding XRP.
SEC Wanted To Help Ripple’s Legal Concerns Regarding XRP
Ripple interrupted the US Securities and Exchange Commission (SEC) from obtaining records of legal concerns regarding XRP’s classification as a security.
On May 7, the SEC requested that Judge Netburn require Ripple to submit documents of legal guidance about whether its huge XRP sales comply with federal securities laws
“Ripple claims that the SEC’s sought conversations are protected by the attorney-client privilege, which has not been waived,” stated US Magistrate Judge Sarah Netburn in a document made public Wednesday.
The SEC said that Ripple’s grasp of XRP’s legal status would help it in its current court struggle. Ripple Labs is being sanctioned by the SEC for selling $1.3 billion in XRP in continuing unregistered securities sales. The company has rejected the SEC’s charges since they were filed in December.
Success in Interrupting The SEC From Accessing Its Legal Concerns
Jeremy Hogan, a partner at law firm Hogan & Hogan who has closely followed the case, tweeted that today’s decision is “very important because the Judge states Ripple’s subjective beliefs [a]re XRP are NOT relevant to the Fair Notice defense, blocking the road the SEC wanted to use to fight the Defense.”
Judge DENIES the SEC’s motion to compel production of Ripple’s lawyer opinion letters. Very important because the Judge states Ripple’s subjective beliefs re XRP are NOT relevant to the Fair Notice defense, blocking the road the SEC wanted to use to fight the Defense. https://t.co/MHsx569BmO
— Jeremy Hogan (@attorneyjeremy1) May 30, 2021
However, Judge Netburn said that her judgment is limited to this particular problem, and that “the Court takes no view on whether Ripple’s asserted defense is cognizable or if it will prove meritorious.”
Ripple has requested Judge Netburn to ask the SEC to reveal internal notes concerning cryptocurrency in a tit for tat. Its attorneys thought that learning if the SEC was biased towards XRP, would be beneficial. Judge Netburn approved this request “in part.”