US Judge Sarah Netburn of the District Court for the Southern District of New York has denied the request of the United States Securities and Exchange Commission (SEC) to access Ripple’s legal communications in the course of the legal dispute in course between both entities.
Pursuant to the denial memorandum, the SEC had previously asked the court to order Ripple to drop all communications constituting, transmitting, or discussing any legal advice that Ripple has requested or received if it offers and sales of XRP were or would be subject to. to federal securities laws. . Therefore, the court denied this claim as a violation of attorney-client privilege.
The battle between the SEC and Ripple has been ongoing since December 2020. The SEC accused Ripple of being involved in the sales of XRP cryptocurrencies, which offered security without proper records. While the blockchain payments firm defended its position that there were no clear guidelines from the SEC, both have explored new options to stay on the winning side of the court case.
So far, Ripple has recorded more than one victory against the SEC, despite the company’s current denial of access to communications. Against the SEC’s initial refusal to surrender its documents regarding the classification of Bitcoin (BTC) and Ethereum (ETH) as non-securities. The court has required the agency to grant access to those documents. Additionally, Justice Netburn has denied the SEC snooping into the personal financial records of the two accused Ripple executives, in this case CEO Brad Garlinghouse and co-founder Chris Larsen.
While law enforcement officials were once divided over the current Ripple-SEC case, a former SEC executive has argued that Ripple has a good chance of winning the case. Both entities appear to have more to discover in the ongoing legal battle; a victory for Ripple may change the regulatory terrain for cryptocurrencies in the US.
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