SEC Files Opposition Against XRP’s Motion to Compel In Latest Lawsuit Saga
In response to the motion by XRP, SEC has filed an opposition against it, pleading with the court to deny XRP’s request for the commission to submit its employees’ pre-clearance trading documents. The opposition is seeking to intercept XRP’s inquiry about the SEC’s employees and their financial information. According to the SEC, providing such details is not connected to XRP’s trading compliance.
SEC Moves to Intercept XRP’s Request
In a bid to suppress SEC’s claims, Ripple filed the motion after the commission accused the crypto platform of violating trading regularities, which involved allowing SEC’s employees to own and trade XRP. According to the regulator, this was against the commission’s ethics regarding crypto trading. On the 27th of August, Ripple filed a motion, asking the financial regulator to produce pieces of evidence showing whether it permitted its employees to get involved in crypto trading.
Speaking of the motion, the defendants asked the regulator to submit the necessary cryptocurrency trading files in two ways; the SEC could submit nameless documents to conceal the identity of the parties involved or avail the information in an aggregate form. The files must highlight trading preclearance data about the cryptos traded or exchanged. In addition, XRP requested for the regulator’s workers’ certifications about XRP holdings.
Following the court’s order, SEC submitted, “Ethics Guidance Regarding Digital Assets,” a policy which hadn’t been implemented until January 2018. Ripple debated that the ethics guidance clearly exonerates XRP because the SEC hadn’t enforced any law prohibiting its workers from trading crypto till 2018. However, the plaintiff believes granting XRP’s request to produce further documents is an intrusion of its employees’ data.
SEC’s Claim Enquiry Sought By Ripple Irrelevant
Quoting the pre-clearance guideline, which states that clearing a request is no determiner of the transaction’s agreement with securities regulations, the financial institution dismissed the inquiry by the Defendants. The commission referenced the Prohibited Holdings lists in the Ethics policy, which barred the commission’s workers from having entities specifically listed as assets. But, Ripple revealed that the list had no XRP, BTC or ETH on them until April 2018. The financial commission concurred with Ripple, admitting to the exclusion of the above cryptos from the list.
The list comprises entities whose securities are prohibited from having as assets. SEC workers are in no position to own these. The lawsuit against XRP could be dropped if the SEC sees no reason to pursue the case further, but it highlights some major flaws in how the SEC interprets certain policies.
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