SEC trashes Ripple’s XRP status defense and reiterates privilege

Rick Steves

“Defendants seek the documents to put on a (wholly improper) defense that “the SEC staff…questioned whether XRP and other digital assets were securities” and therefore that Defendants are not liable.”

The SEC has filed its Letter Brief as previously ordered by Judge Sarah Netburn on the August 31 telephone conference.

The Judge will be performing an in-camera review of the documents the Securities and Exchange Commission claims are privileged. According to the letter, the plaintiff says all documents are protected by DPP.

“The SEC respectfully submits that all documents referenced in Appendix A of Defendants’ motion to compel (Dkt. 289, “Motion”) are predecisional and deliberative and therefore protected by the deliberative process privilege (“DPP”).

“Many are also protected by the attorney-client privilege and the work product doctrine. The compelled release of the SEC’s
predecisional deliberations relating to digital assets would discourage meaningful deliberation among SEC officials and staff relating to investigations, potential cases, and other regulatory activities taken or under consideration in a field where regulation carries significant consequences for the financial markets.

“Additionally, the documents are irrelevant to Defendants’ proposed defenses — even under Defendants’ relevance theory. Defendants seek the documents to put on a (wholly improper) defense that “the SEC staff…questioned whether XRP and other digital assets were securities” and therefore that Defendants are not liable. Motion 4. But none of the documents on Appendix A, except for Entry 2, address whether transactions in XRP are securities.

“The Court should not pierce the SEC’s DPP and other privileges, particularly when the documents are irrelevant to Defendants’ proffered defense”, the agency continued, adding that “piercing the government’s privilege as a litigant over materials prepared in advance of litigation would be extraordinary and inappropriate.”

“This Is It” moment for XRP in Ripple lawsuit, legal experts say

FinanceFeeds has covered the hearing and Jeremy Hogan’s analysis. Now, the lawsuit agenda has September 20 as the next date: the deadline for the depositions of Brad Garlinghouse (Sept 14) and Chris Larsen (Sept 20), which should have originally taken place in August.

Ripple’s turn to oppose this letter brief from the SEC will be on September 28. The defendants are expected to file a motion in opposition with relevant commentary to the SEC’s arguments.

Judge Sarah Netburn will then perform the in-camera review of the SEC’s internal documents in question and, taking into account both the SEC and Ripple’s arguments on the matter, will make a ruling regarding the Deliberative Process Privilege (DPP) claimed by the regulator.

Those documents, which the SEC refuses to hand over to Ripple despite the Judge’s past insistence, relate to the SEC’s internal discussions over the nature of XRP, BTC, and ETH.

In the meantime, Ripple has been ordered to deliver its Slack messages to the SEC, which are expected to be useful to the agency’s argument that Ripple and its individual defendants marketed XRP as a security.

 

Read this next

Retail FX

Weekly Roundup: eToro links up with Elon Musk, US crackdown on Russian FX

Let’s take a look back at top stories that dominated the financial markets in our Weekly Round coverage. This week’s digest takes a deep dive into the most recent events and trends within the Forex, Fintech, and cryptocurrency.

blockdag

Must-Watch Top 5 Crypto Picks for Q2 2024 Featuring BlockDAG, Toncoin, Solana and More

Dive into BlockDAG’s meteoric rise and explore other promising altcoins like Pepe, Toncoin, Solana, and Render for superior returns.

Retail FX

Clone of Admiral Markets draws FCA attention

The United Kingdom’s financial markets watchdog today unmasked another fraudulent entity, this time bringing to light a clone firm that has been posing as FCA-‎authorised brand, Admiral Markets UK Ltd.

Digital Assets

Gemini Earn users to recover $2.18 billion in crypto payouts

Cryptocurrency exchange Gemini has agreed to pay $50 million worth of digital assets to investors in its Gemini Earn program as part of a settlement with the New York Attorney General (NYAG), announced on Friday.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: British Pound (GBP) Weakness, US Inflation, Euro, USD June 14 ,2024

British Pound weakens due to lower inflation expectations, potential policy changes from Reform Party, and broader economic concerns.

blockdag

Q2 2024’s Top 5 Cryptos to Buy: BlockDAG, Pepe, Toncoin, Solana and Render

Learn about 2024’s Q2 top 5 cryptos. Explore potential high-return and advancements of altcoins like BlockDAG, Pepe, Toncoin, Solana, and Render.

Fundamental Analysis, Tech and Fundamental, Technical Analysis

GBPCAD Technical Analysis Report 14 June, 2024

GBPCAD currency pair can be expected to fall further toward the next support level 1.7250, former strong resistance from last year.

Digital Assets

Binance acquitted of tax evasion in Nigeria, now faces AML charges

Nigeria has dropped tax evasion charges against two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, after the world’s largest cryptocurrency exchange appointed a local representative to handle court processes related to the allegations.

Digital Assets

Trezor launches new hardware wallet ‘Safe 5’ with fresh security features

Crypto hardware wallet manufacturer Trezor announced on Friday the launch of its latest flagship product, the Trezor Safe 5, featuring upgraded security to promote self-custody of digital assets.

<