Did you trade XRP: Ripple puts SEC employees on the spot

Rick Steves

New Motion to Compel aims to expose the SEC’s policies governing digital assets and their employees’ trading of XRP, ETH, and BTC. It may support Ripple’s fair notice defense.

Ripple has filed today a motion to compel the SEC to produce preclearance trading documents in regard to XRP, BTC, and ETH, as well as certifications concerning SEC employees’ XRP holdings.

This move aims to address the SEC’s refusal to produce certain information necessary to complete Defendants’ understanding
of the SEC’s trading policies governing digital assets and whether the SEC permitted its own employees to trade XRP, the letter explained.

“We met and conferred with the SEC on this issue on July 8, July 15, August 18 and August 25, without progress”, the counsel for Ripple and individual defendants continued, reminding that the court granted the motion to compel the SEC to produce its trading policies regarding digital assets in June.

SEC v. Ripple: XRP Holders uncover video bombshell to throw against SEC

The documents produced by the SEC then showed that, until January 19, 2018, the SEC had not adopted or imposed any policy restricting SEC employees from trading in digital assets – which is consistent with the SEC not having viewed digital assets as securities, the motion stated.

“This evidence provides strong corroboration of the Defendants’ defenses in this case and undermines the SEC’s claims. Specifically, the now-acknowledged fact that the SEC itself did not restrict its own employees from selling or buying XRP, notwithstanding its longstanding regulation against its employees engaging in securities transactions without preclearance, indicates that the SEC had not concluded, prior to at least January 2018, that sales and offers of XRP were securities transactions.”

Mark Cuban blasts SEC Chair on crypto clarity as Ripple lawsuit lingers

Not only it will undermine the SEC’s allegation that Ripple and its individual defendants were reckless about learning the status of XRP as early as 2013, but it will support Ripple’s fair notice defense.

In addition, the SEC has a “prohibited holdings” list and a “watch list”. According to the agency, BTC, ETH, and XRP were never on the former. XRP entered the latter on April 13, 2018, meaning SEC employee transactions in XRP after that date were evaluate on a case-by-case basis.

SEC v. Ripple: Court updates agenda for XRP lawsuit

“Defendants are entitled to know whether the SEC permitted its own employees to sell , buy and hold XRP as market participants during the very period the SEC now claims that Defendants violated the law and acted recklessly by selling XRP. Defendants are entitled to know whether the SEC ever prohibited its employees from trading XRP and if, as the SEC has orally suggested, that occurred for the first time only in March 2019.

SEC appoints CFA’s Director of Investor Protection while under fire for Ripple lawsuit on XRP

“Defendants are also entitled to know whether the SEC’s approach to allowing employees to trade ether or bitcoin changed after William Hinman’s speech on June 14, 2018 – another issue that is highly relevant to this litigation”, Ripple argued.

SEC v. Ripple: Find here the daily updates to the XRP lawsuit

Read this next

Digital Assets

USDC sees massive $10.4 billion outflows in March

Cryptocurrency traders have withdrawn more than $10 billion from the world’s second largest stablecoin, USDC, in less than three weeks even as concerns over the fallout from the Silicon Valley collapse have receded.


OSTTRA’s Joanna Davies goes beyond 30-30-30 data standard at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Joanna Davies about OSTTRA.


CloudMargin’s Stuart Connolly on how to manage collateral amid high rates at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Stuart Connolly about CloudMargin’s SaaS platform, said to be the only cloud-native collateral and margin management system in the industry, at a time of stress due to rising interest rates.


Baton Systems’ Alex Knight on solving post-trade with DLT at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Alex Knight about Baton Systems’ about rising settlement fails, collateral management, and the profile of DLT beyond cryptocurrencies.

Industry News

Wise claims 92% of banks hide or inflate FX fees despite Cross-Border Payments Regulation 2

“Banks continue to exploit loopholes in EU regulation to mislead their customers and overcharge them through fees hidden in inflated exchange rates.”

Industry News

Goliath Partners opens Miami headquarters to recruit C++ developers for fintech and trading

I’m extremely excited to be pursuing this venture and having the backing of such knowledgeable entrepreneurs who have seen success time and time again. We’ve already made brilliant headway working with leading investment houses and trading exchanges. It’s just the start, but we’re already making a huge difference with our work.”

Industry News

IOSCO calls for cooperation against cross-border scams, greenwashing, misconduct, and fraud

“Regulators need effective resources, practices, tools, and techniques to promote consumer protection and market integrity, which is supported through participation in critical multilateral forums such as IOSCO.”

Institutional FX

Archax rolls out tokenization engine as LawtechUK confirms legal standing of tokens

“As the UK’s first FCA regulated digital securities exchange, we are now building on this to pave the way to make traditional assets interoperate with Web 3.0.”


Broadridge migrates bond e-trading platform LTX to AWS

“LTX is committed to offering innovative e-trading technology that facilitates transparency and liquidity discovery. By migrating to AWS, LTX can leverage the scalability of the cloud to continue to deliver enhanced data and execution capabilities to our clients.”