Ripple wins access to SEC discussions on defining crypto assets as securities
Ripple Labs has been given access to the U.S. Securities and Exchange Commission (SEC) documents “expressing the agency’s interpretation or views” on the crypto assets.
As per the Law360, United States Magistrate Judge Sarah Netburn permitted the defendants’ motion “in large part,'' determining that SEC minutes or memos concerning crypto are likely discoverable. Judge staff-to-staff email communications do not need to be created.
The Magistrate Judge also allowed for the SEC and Ripple to raise debate with the ruling.
In the last month of 2020, the Securities and Exchange Commission filed a lawsuit alleging Ripple Labs, its chairman Christian Larsen and CEO Brad Garlinghouse, increased $1.38 billion by unlicensed security offering in August 2013.
Ripple has challenged the SEC’s suit, claiming that XRP is similar to Bitcoin or Ethereum — both of which have been categorized as commodities by the SEC, in addition to criticizing the 8 years taken for the agency to file its complaint against Ripple.
Law360 reports that CEO’s counsel, Matthew Solomon, believes it may be “game over” for the SEC’s suit should they find proofs the regulator has deemed XRP similar to BTC or ETH, noting the SEC’s regulatory purview does not extend beyond securities.
With the SEC having taken 8 years to file its complaint against Ripple, the firm’s lawyers also believe they can erod the SEC’s claims should they be able...