US Magistrate Judge Denies Motion Of Ripple To Prohibit SEC From Sending MOU Requests To Foreign Regulators
The ongoing legal battle between the SEC and Ripple continues to heat up, with new developments emerging seemingly every other day. As per the most recent development, however, it is now known that the SEC has been granted permission to continue its process of obtaining relevant documents from various foreign exchanges as well as Ripple’s business partners and associates who may be operating overseas. This process will be carried out via Memorandum of Understanding (MoU) requests.
This development is certain to be a blow to Ripple as well as its many investors and supporters, as this also coincides with the XRP token increasing in price lately, but this news has every chance of having an adverse effect on the price now. As of this time, the current price of XRP is $1.14. XRP had also recently managed to temporarily become the 3rd highest ranked cryptocurrency by market capitalization before falling down a couple of ranks to the 5th position.
Ripple’s motion was denied by Judge Netburn
Sarah Netburn, the judge primarily in charge of the case, had recently denied Ripple’s previously suggested motion which was geared towards preventing the SEC from being able to send MoU requests to the international securities regulators. The reasoning behind Ripple’s motion had been the idea that the SEC was utilizing intimidation tactics in an effort to strike fear into the foreign business associates and partners. However, the judge has since stated that there is a lack of evidence to adequately support this theory.
The defendants had additionally desired to pressure the SEC into using the Hague Convention (which is known to be notoriously both slow as well as highly inefficient) process, but the judge has nevertheless permitted the use of the MoU requests.
Major setback for Ripple
As per the recent developments, the SEC is required to present all of the relevant documents garnered through the aforementioned requests. However, the Commission reserves the right to withhold the privileged ones from being produced. In related news, it had been during the last month that the SEC announced that three foreign counterparts, in particular, had outright rejected the possibility of providing any kind of assistance.
Needless to say, it is a tough time for Ripple, as the SEC has now decided to compel Ripple into presenting all of the legal advice that it had ‘received or sought’ about the regulatory status of the XRP token. In other news, Chris Larsen and Brad Garlinghouse had managed to block the SEC’s requests pertaining to personal and individual banking records not too long ago.
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