Ripple Labs reportedly won the discovery from the US Securities and Exchange Commission (SEC). The court ordered the commission to produce internal records related to discussions of whether XRP tokens are similar to bitcoin and ether, which are currently not classified as securities.
Ripple wins SEC discovery and gains access to Commission’s internal crypto records
A discovery conference call was held on Tuesday for the case against Ripple Labs brought by the US SEC. Ripple Labs reportedly “won discovery” from the SEC.
US Magistrate Judge Sarah Netburn said, “I am going to grant the defendants’ motion in large part,” noting that it was a “high stakes” discovery victory. He then proceeded to order the SEC to produce internal discussions on whether XRP tokens are similar to cryptocurrencies such as bitcoin (BTC) and ether (ETH), which are currently not regulated as securities.
The judge clarified that it is not necessary for email communications to occur between staff members. However, it is likely that other records could be discovered, such as SEC minutes and notes, “that express the agency’s interpretation or opinions” about cryptocurrencies.
The commission sued Ripple Labs, its CEO Brad Garlinghouse, and co-founder Christian Larsen in December last year alleging that they sold $ 1.38 billion of XRP tokens without complying with federal securities laws. The case is also being supervised by federal district judge Analisa Torres.
Ripple and its executives argue that one of the reasons the SEC failed to take enforcement action on XRP for eight years is that the commission was confused as to whether XRP was more like bitcoin and ether, which have not been considered securities, or like other cryptocurrencies and tokens. that have been classified as securities.
Matthew Solomon, a Garlinghouse attorney, said before Tuesday’s ruling: “We need this discovery to defend ourselves.” He explained that if defendants find evidence indicating that the SEC thought XRP was similar to bitcoin or ether, it could be “game over” for the entire lawsuit.
What do you think of the court ruling in favor of Ripple against the SEC? Let us know in the comment section.
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