Get the scoop on finance - sign up for mobile alerts
Regulators
| On
April 14, 2022

Ripple vs SEC: Judge Strikes Down Regulator’s Request To Withhold Key Documents in XRP Lawsuit

By Daily Hodl Staff

A federal judge is striking down the U.S. Securities and Exchange Commission (SEC) request to withhold certain internal email conversations from its lawsuit against Ripple.

Federal Judge Sarah Netburn ordered the SEC to hand over the requested drafts and emails relating to a 2018 speech from William Hinman, the former director of the Commission’s Division of Corporate Finance.

ADVERTISEMENT

In the speech, Hinman said Ethereum (ETH) was not a security.

The SEC sued Ripple in December 2020, alleging that the company sold XRP as an unregistered security, a position the regulator maintains to this day.

The regulator also filed individual charges against Ripple CEO Brad Garlinghouse and the company’s co-founder, Chris Larsen.

Netburn first ordered the SEC to produce the emails in January, but the SEC challenged the order.

ADVERTISEMENT

While Netburn denied the SEC’s motion to reconsider the order, she did grant a clarification.

Explains the judge,

“As discussed above, the question is whether any of the communications about, edits to, or comments on drafts of the Speech were not just related to specific deliberations facing the agency but comprised an ‘essential link’ in those deliberations. Having reviewed the documents, I find that, in general, agency staff communications about edits to the Speech—and the edits themselves—were not part of deliberations about how to communicate agency policy.

However, to the extent that there exist communications between staff discussing the Speech in the context of how it implicates other, separate agency deliberations—not deliberations about the content of the speech—the SEC may seek leave to redact those communications from its production. To give the SEC some guidance, comment 12 on page 6 of the Speech draft in Document J, which was submitted for in camera review, is the type of communication contemplated.”

The “Document J” Judge Netburn mentions is not publicly available.

ADVERTISEMENT

Attorney and crypto legal expert Jeremy Hogan says on Twitter that the clarification is “a little concerning.”

“My concern: it’s those parts of the emails that are most damaging to the SEC. How will we know? If the SEC appeals up to Judge Torres, they are in trouble.”

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/LADYMAYPIX