SEC v. Ripple: Judge aware of XRP Army’s investigative work – Atty Hogan

Rick Steves

“Well, I’ll say it: I swear Judge Netburn is following some of the XRP people on Twitter or maybe even on Youtube. I didn’t think so before but now… I see you Judge Netburn”.

Yesterday’s hearing was a key development for the SEC v. Ripple lawsuit although Judge Sarah Netburn will only make her final ruling on the privilege issue after September 28.

The conference room was maxed out, as promised by the XRP holders, and the Judge was clearly looking for clarification as to the SEC’s arguments for deliberative process privilege (DPP) despite the Judge’s prior insistence that the agency’s internal documents were relevant for the fair notice defense, therefore they must be handed over.

The highlight of the hearing was the Judge’s exchange with the SEC counsel Jorge Tenreiro as to the objectiveness or subjectiveness of “recklessness”.

“Mr. Tenreiro, is recklessness a subjective or objective standard?”, she asked.

The direct question was met with much evasiveness. “You know it’s always a bad sign when asked a black and white question by the Judge you have to start with “judge let me just first start off by saying…”, attorney Jeremy Hogan commented in a video.

“But eventually even the SEC did have to admit that its an objective standard. And why is that so critical? Because if the standard was an objective standard – what did Brad Garlinghouse know about whether XRP was a security when he sold it – if that’s all that’s relevant – the SEC’s internal deliberations are 100% completely irrelevant”.

XRP Army to the rescue

Statements and videos regarding the SEC and its officials’ views from 2017 to 2020 on digital assets, ETH, and XRP, show that the agency was far from a consensus on what constitutes a security or not in the new asset class.

An example is a video uncovered by the XRP community featuring SEC’s Amy Starr and Coinbase’s Dorothy DeWitt (now at the CFTC) that we covered and transcribed here.

The Judge seemed to be aware of such recordings. “What if all the SEC Commissioners were out having lunch and talking about how they are all confused about XRP and other digital assets status as a security or not, that would be relevant”.

For Mr. Hogan, that was the highlight of the hearing. “Well, I’ll say it: I swear Judge Netburn is following some of the XRP people on Twitter or maybe even on Youtube. I didn’t think so before but now… I see you Judge Netburn”.

If underlying law was unclear even to the SEC…

“If the underlying law was unclear at the time even to the SEC, then the alleged violation could not have been so obvious that the Defendant must have been aware of it”, Ripple counsel Matt Solomon stated, citing to the Novak v. kasaks case.

According to Jeremy Hogan, the Judge agrees those documents are relevant, enough to overcome the SEC’s privilege argument. That is why she has ordered an in camera review.

This means the SEC will be providing “lightly” redacted copies of the “privileged” documents to Ripple and complete and unredacted copies of all documents to the Judge, so she can make a final ruling as to the privilege issue.

In the meantime, Ripple has filed a motion to compel the SEC to provide non-evasive answers in regard to how the Howie Test applies to XRP. The plaintiff has been evading the defendants’ inquiries on the matter, even contradicting past statements.

You might want to read: 

Ripple corners SEC with motion on how Howie Test applies to XRP

SEC v. Ripple: Judge not happy with SEC’s arguments, Orders in-camera review

SEC files motion to compel Ripple to hand over “hidden” recordings 

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

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

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



Read this next

Industry News

Robinhood posts strong numbers amid growth in funded accounts

Robinhood, one of the largest trading platforms in the US, has announced the results of the third quarter which shows some robust growth even though the company did not push ahead with any major plans related to crypto.

Inside View

MetaTrader 4 – What Is It?

MetaTrader 4 is the most widely used Forex platform among brokers. What are the platform’s primary features?

Digital Assets

BlockBank launches DeFi application with Robo Advisor

BlockBank, a large mobile banking platform, has announced the launch of its DeFi application which will combine decentralized finance with AI-powered technology to help traders and investors make better trading decisions in the crypto market.

Digital Assets

eToro announces crypto staking and underlying assets for Australians

Australian users opening cryptoasset positions on eToro can now purchase the underlying asset. Soon eToro will enable coin transfers from the eToro platform to the eToro Wallet.

Digital Assets

EQONEX announces international sales team to show off digital asset offering

“It is time to show the world the quality of the EQONEX group offering, and I am excited to welcome such a high caliber group of salespeople to the organization”.

Retail FX

Webull donates 8,000 Brooklyn Nets tickets to New Yorkers

“The entire Webull team is thrilled that our first-ever sports partnership is with the Brooklyn Nets, who are only five subway stops from our headquarters in New York.”

Digital Assets

AEX integrates with fiat and crypto custodians Banxa and Xanpool

Spot trading, flexible savings, DeFi mining, are several ways AEX Global allows users to participate in the wider crypto space.


Barchart launches Microsoft Excell add-in

“Whether looking to perform their own analysis, add other data sources, build macros or anything else leveraging the powerful features of Excel, we now provide that ability.”

Retail FX

Inceptial expands Belarussian FX broker into China and Japan

“We are fully aware of the needs, customs, aspirations and limitations of the different markets of Asia, after careful research. We look forward to sharing our success with our new Asian partners on this journey.”