Judge Dismisses Ripple’s Request for SEC Crypto Trading Disclosures

[ad_1]

advertising

A U.S. magistrate has denied Ripple’s request for documents detailing the regulators’ crypto trading activity.

In a motion released to the Federal Register today, Judge Sarah Netburn refused to grant Ripple access to documents that could show whether Securities and Exchange Commission (SEC) employees executed transactions in bitcoin, ether. or XRP.

The court previously ordered the SEC to produce its crypto-related trade policies, and it was later revealed that the regulator had none at the start of Ripple’s calculation. Ripple argues that when company officials met with SEC attorneys in August, app attorneys said at the meeting that SEC employees were prohibited from trading in XRP after issuance. of the formal order of inquiry in 2019.

However, Ripple also claims that the SEC has yet to produce any documents supporting its statement despite being forced to do so by the court.

In addition to these documents, Ripple’s legal team contends that including the individual business decisions of SEC employees in the discovery “will, at a minimum, expose the lack of clarity regarding the status of XRP and whether the SEC considered XRP a security, ”according to Netburn’s analysis in the dismissed petition. But that doesn’t seem to be relevant in this case, according to Netburn:

“The defendants have not shown that such individual business decisions influence the issues in this case. While SEC policies (or the lack thereof) may provide relevant evidence related to fair notice or recklessness, how an ethics counselor viewed a trading decision is more likely to cause confusion. or create collateral disputes ”, we read in the decision.

Additionally, these SEC disclosures promise employee privacy, and Ripple has yet to prove that suspending those protections will make a significant difference in the case, according to Netburn.

Despite losing the battle over individual trading logs, Netburn’s motion reiterated that the SEC should provide Ripple with documents confirming its recent claim that agency employees have been asked to refrain from trading XRP. in 2019.

Related reading

[ad_2]