Judge denies Ripple's request for SEC crypto trading disclosures

advertisement

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

In a motion published to the federal register today, Judge Sarah Netburn declined to grant Ripple access to documents that could show whether employees of the Securities and Exchange Commission (SEC) have executed transactions in bitcoin, ether or XRP. 

The court had previously ordered the SEC to produce its trading policies related to crypto, and it was later revealed the regulator had none at the start of Ripple's reckoning. Ripple contends that when the firm's representatives met SEC counsel this August, the enforcement lawyers stated during the meeting that SEC employees were barred from trading XRP after the formal order of investigation was issued in 2019.

However, Ripple also claims that the SEC has yet to produce any documents backing up their statement despite being compelled by the court.

In addition to those documents, the Ripple legal team argues that including individual trading decisions of SEC employees in discovery "will, at a minimum, expose the lack of clarity regarding XRP's status and whether the SEC believed XRP to be a security," according to Netburn's analysis in the denied motion. But that doesn't seem to be pertinent to this case, according to Netburn:

"Defendants have not shown that such individual trading decisions bear on the issues in this case. Although the SEC’s policies (or absence of policies) may provide relevant evidence related to fair notice or recklessness, how an Ethics Counsel viewed a trading decision is more likely to cause confusion or create collateral litigation disputes," read the decision.

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

Despite losing the battle on individual trading logs, Netburn's motion did reiterate that the SEC should provide Ripple with documentation confirming its recent claim that agency employees were directed to refrain from trading XRP in 2019. 

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More