SEC v. Ripple: “Complicated privilege issues” arise but deadline is near

Rick Steves

“Well, because fact discovery ends in just 3 weeks, and the SEC gets 5 days to respond, I would think that Ripple would file a letter in the next day or two. The issue has no doubt been brewing for some time”, said attorney James K. Filan. 

Matthew Solomon, Ripple’s lead counsel, sent a letter to Judge Sarah Netburn about a discovery dispute between both parties with respect to documents withheld by the SEC.

The agency hasn’t handed over the requested documents, despite the Judge’s insistence, as the SEC claims there is deliberative process privilege. The parties want to expose their arguments in 8-page letters addressing the issue.

Commenting on the letter that should help move the discovery forward after months in a limbo state, attorney Jeremy Hogan said:

“About. Time. In this litigation, 8 pages is a large brief so seems like some complicated privilege issues have arisen. I am interested to see what they might be. Cutting it close: this needs approval, then filing, then a reply, then obtain a hearing date – all before the 31st!”

“Well, because fact discovery ends in just 3 weeks, and the SEC gets 5 days to respond, I would think that Ripple would file a letter in the next day or two. The issue has no doubt been brewing for some time”, added attorney James K. Filan.

Fact discovery was extended by 60 days after an SEC request, thus altering the lawsuit agenda as a whole. At the time, Ripple opposed arguing the SEC had sufficient time to investigate this matter before filing suit and because Ripple wants to move for summary judgment as soon as possible.

How clearer can it be for Ripple’s XRP? SEC tells Sen. Warren that Howie Test works for crypto

In early June, Ripple filed a motion to compel the Securities and Exchange Commission to turn over internal documents regarding cryptocurrencies BTC, ETH, and Ripple’s XRP. This followed a prolonged back and forth between the two parties and Judge Netburn.

Judge Netburn told the plaintiff to turn over the documents twice already, but not a single document has been delivered. It should be noted that the Judge can order monetary sanctions or even dismiss the case altogether should the plaintiff remain uncooperative regarding the ordered discovery. A dismissal, however, is highly unlikely at this stage.

Outside the court, Ripple CEO Garlinghouse took the opportunity to compare the SEC’s views on regulatory clarity to an alcoholic in denial.

“In my judgment, if you’re dealing with an alcoholic that doesn’t want to admit they have an alcohol problem, to say that we have certainty, we have clarity, is like the alcoholic saying ‘I don’t have a problem’. This is the elephant in the room.”

Read this next

Institutional FX

Deutsche Bank goes live with its FX pricing and trade engine in Singapore

Deutsche Bank has gone live with its electronic foreign exchange pricing and trading engine in Singapore, where demand for currency trading among institutional players is on the rise.

Retail FX

CySEC extends the suspension of Depaho license until November 19

The Cyprus Securities and Exchange Commission (CySEC) has decided to extend further the suspension of the license of the Cyprus investment company Depaho Ltd, which operates the retail FX brands GTCM, FXGM and TRADEAPP.

Retail FX

CAPEX.com introduces QuantX, a tool to build automated portfolio

Multi-licensed broker CAPEX.com has rolled out a new portfolio platform, QuantX, which uses a client’s risk tolerance assessment and other criteria to create fully customized investment portfolios.

Digital Assets

Ripple scores major win: Judge orders SEC to explain…a lot

The SEC is ordered to explain, among other things, how the Howie test applies to XRP, what is the status of Ether and Bitcoin, and the sale of XRP as investment contracts.

Retail FX

Trade CFDs on 900+ of the Biggest Companies this Earnings Season with HotForex

Traders with the internationally acclaimed multi-asset broker HotForex can trade CFDs on the stocks of over 900 companies during Earnings Season with tight spreads, flexible leverage, negative balance protection and the many other advantages that have made it an honest, open and transparent broker of choice to over 2.5 million traders around the world.  

Digital Assets

Polygon (MATIC) double spend bug yields $2 million bounty for developer

Polygon, the Layer 2 solution on top of Ethereum, has recently paid out the highest ever bug bounty in history to a whitehat developer Gerhard Wagner for pointing out a double-spend bug in the network which could have resulted in huge losses if it had been exploited.

Digital Assets

KuCoin aims to become largest social trading platform in crypto

KuCoin was founded in September 2017 and it currently provides Spot trading, Margin trading, P2P fiat trading, Futures trading, Staking, and Lending to its 8 million users in 207 countries.

Digital Assets

Apifiny’s crypto trading network adds Instant Transfers for best bid and offer

Instant transfers significantly enhance Apifiny Connect, allowing traders to more efficiently buy and sell on 25 connected markets across six continents.

Retail FX

iFOREX clients can follow two experts trading in real time

Trading Rooms’ access will be free of charge for active traders who open an account with the broker.

<