CryptocurrencyCryptocurrency RegulationNewsRipple (XRP)

US SEC Claims XRP Admission Requests ‘Unreasonable and Burdensome’

As the lawsuit between blockchain payments firm Ripple and the US Securities and Exchange Commission continues, the latter seems to be evading answers to certain questions. In the latest development, the US SEC has tagged nearly 30,000 requests for admission filed by Ripple against it as ‘unreasonable, abusive and burdensome.’

Instead, the US regulator is pleading for a telephone conference, which will allow it to evade the admission requests. The US SEC is banking on protective order under the FRCP 26(c) (1) to shield itself from answering the posers in Ripple’s plea. Ripple has asked the regulator to provide answers to nearly 30,000 questions covering more than 5000 pages 

US SEC Urges District Court to Dismiss Ripple’s Plea

Responding to Ripple’s plea, the US SEC has defended its decision to seek the protective order under the court’s provisions. Due to the number of requests, the commission has argued that the process of answering each of them would be a herculean task for it. It also cited other requests that the district court had dismissed on account of being unreasonable as well and urged the court to dismiss Ripple’s filing.

However, the commission is being criticized in the court of public opinion for being pretentious. Some critics have alleged that the US SEC is trying to whip up the victim mentality to no avail. In the past and while the case was ongoing, Ripple was compelled by the commission to expend more than $1 million on data discovery. Yet, it hides behind the excuse of unreasonableness to escape the requests filed against it.

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US SEC Says Responses to Requests Not Relevant to Case

Apart from its defense of ‘abusive and burdensome,’ the US SEC also claims that it will need a long time to compile proper responses to the requests. The regulator equally added that it does not see how Ripple aims to use its responses during the trial or at the final judgement. 

In its counterargument, the US SEC claimed that its legal team and Ripple’s have corresponded via emails and video chats on the issue. However, its meetings have ended in stalemates with the lawsuit almost nearing an end. Thus, the commission has decided to file for the protective order under which Ripple’s requests can be dismissed. 

This is not the first time the US SEC has evaded answers to relevant questions. When asked in the same case what it thought about Ether since it also held an ICO in 2017, the regulator failed to give any response. In an earlier situation, the US SEC did not notify the public of XRP’s status, after being asked by third parties. Interestingly, the regulator admitted its omission in one of the fact discovery sessions. 

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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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