CryptocurrencyCryptocurrency RegulationNewsRipple (XRP)

US SEC Request for Ripple’s Lobbying Efforts Rejected

In the ongoing legal battle between United States Securities and Exchange Commission (SEC) and cryptocurrency firm Ripple, the magistrate court presiding over the suit has rejected SEC’s motion praying the court to compel the crypto firm to release documents relating to its lobbying attempts. SEC alleged that the crypto firm had curried the favor of some notable parties to support them while the suit was still on. 

Magistrate Judge Sarah Netburn is the presiding judge over the suit. Last month, the judge had likewise rejected SEC’s request compelling the crypto firm to release the memos and correspondence exchanged between the firm and its legal team discussing sales on XRP in 2013. The judge had cited attorney-client privilege which fosters private communication between attorneys and their clients. In her judgement, she also indicated that the crypto firm had not given up its lawyer-client right even though it is possible to do so under some circumstances. 

US SEC Initiated suit Against Ripple in 2020

The suit had begun in December 2020 with the US SEC claiming that co-founders of the crypto firm were offering unregistered securities that summed up to $1.3 billion. Since then, the suit has been dragging on since then with the crypto firm scoring victories against the SEC. In the latest judgement, the Judge Netburn had said that the crypto firm lobbying attempts were not relevant to the case. Furthermore, she said if the SEC argues that they are, then the burden of proving it would lie on the commission.

📰 Also read:  Bitcoin Crosses Above $67k as Traders Navigate 'Liquidity Hunt' Post-Rally

US SEC alleges that the crypto firm had lobbied and paid a top ex-official of the US Commodity Futures Trading Commission to publicly indicate his support for the firm. However, the judge said in line with the crypto firm’s argument that the commission had failed to issue a fair notice to investors that XRP was an investment asset. The fair notice rule allows the court to interpret unclear and ambiguous provisions of law in favor of the defendants.

Court Overturns SEC’s Motion For Documents

Judge Netburn further overturned the SEC’s request for the release of documents and also to backdate its complaints. In May, the court cited the SEC’s eight-year delay in slamming an enforcement action on the firm following XRP’s listing on over 200 exchanges around the world, an increase in the number of transactions. However, according to the June 15 judgement, the court permitted the commission to conduct more attestations. The commission will be allowed to attest to some workers of the firm as well as its former Chief Financial officer.

📰 Also read:  Peter Todd Denies Being Bitcoin Creator Amid Claims in New HBO Documentary

Meanwhile, the crypto firm released a new On-Demand liquidity system to address cross-border payments. The launch of the ODL system coincides with the myriad of issues Small and Medium Enterprises (SMEs) face while trying to scale their businesses and reach out to clients not within their locality. XRP also released federated border chains for its network.


Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  Gold and Bitcoin Both Win if Donald Trump Defeats Kamala Harris, Says JP Morgan

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content