• The United States Security & Exchange Commission previously requested access to Ripple’s concerns regarding the legal status of XRP.
  • Ripple Labs stated that the regulator’s requested communications are protected by attorney-client privilege.
  • The judge decided to deny SEC access, marking another victory for XRP holders. 

Ripple Labs, the company behind XRP, has scored another significant win against the United States Securities & Exchange Commission as the legal battle continues. 

A victory for XRP holders, a public loss for the SEC

The US SEC previously asked Magistrate Judge Sarah Netburn to order Ripple to produce records of legal advice around whether the sales of the XRP token were compliant with federal securities laws. 

The agency claimed that Ripple’s understanding of the legal status of XRP would support its $1.3 billion lawsuit. While the blockchain firm has denied these complaints since the start of the court case in December, the SEC wanted access to Ripple’s legal concerns. 

According to a public filing, Judge Sarah Netburn denied the SEC’s motion and stated:

Ripple asserts that the SEC’s requested communications are protected by the attorney-client privilege, which has not been waived.

This decision bolstered the blockchain firm’s fair notice defense based on the argument that the securities regulator failed to warn the company and other market participants that XRP was an unregistered security. 

According to Jeremy Hogan, an attorney closely following the case, the decision made by Judge Netburn was “very important,” because the Judge states Ripple’s subjective beliefs regarding XRP are not relevant to the fair notice defense. This move would “block the road the SEC wanted to use to fight the defense.”

Judge Netburn clarified that her conclusion only applies to this specific issue, stating:

The Court takes no position about whether Ripple’s pleaded defense is cognizable or if it will prove meritorious.

John Deaton, an attorney and community leader for XRP holders to intervene in the legal action, believed from the start that the SEC had little chance of getting Ripple’s legal advice memo unless the crypto payments company shared it with others. 

Deaton also said that while Judge Netburn’s decision was a public loss for the securities regulator, the outcome alone was not enough to force the SEC to settle the case.

Further, Deaton agreed to a statement where a community member suggested that the decision means that the judge does not believe the argument that Ripple having fair notice because the firm had legal advisory is sound. 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP