Ripple Labs reportedly received the discovery from the U.S. Securities and Exchange Commission (SEC). The court ordered the commission to set internal records regarding discussions about whether XRP tokens are similar to bitcoin and ether, which are not currently classified as securities.
Ripple wins SEC discovery, gains access to the commission’s internal crypto records
A telephone discovery conference was held Tuesday for the case against Ripple Labs brought by the U.S. SEC. Ripple Labs reportedly won a SEC discovery.
U.S. Magistrate Sarah Netburn said, “I’m going to grant the defendants’ motion for the most part, noting that it was a quick profit. She then ordered the SEC to hold internal discussions on whether XRP tokens are similar to cryptocurrencies such as bitcoin (BTC) and ether (ETH), which are currently not regulated as securities.
The judge made it clear that e-mail communication between staff members is not required. However, other records, such as SEC minutes and memoranda, “expressing the agency’s interpretation or views” on cryptocurrencies are likely to be discovered.
The commission sued Ripple Labs, its CEO, Brad Garlinghouse, and co-founder Christian Larsen in December last year, alleging that they sold $ 1.38 billion in XRP tokens without complying with federal security laws. U.S. District Judge Analisa Torres is overseeing the case.
Ripple and its executives argue that one of the reasons the SEC did not maintain XRP for eight years is that the commission was confused as to whether XRP was more like bitcoin and ether, which were not considered securities, or like other cryptocurrencies and tokens. which are classified as securities.
Matthew Solomon, a Garlinghouse adviser, said before Tuesday’s verdict: “We need this discovery to defend ourselves.” He explained that if the defendants find evidence to suggest that the SEC thought XRP was similar to bitcoin or ether, it could be ‘game over’ for the whole case.
What do you think of the court ruling in favor of Ripple against the SEC? Let us know in the comments below.
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