XRP lawsuit: Ripple powerless against SEC’s redactions of DPP documents

Rick Steves

Could the SEC redact 100% of the privileged notes?

Ripple and the individual defendants, Brad Garlinghouse and Chris Larsen, have responded to the SEC’s request for leave to redact portions of handwritten notes by SEC staff.

Ripple admitted that it relies on the SEC’s representations and the Court’s review to determine whether the redacted portions “expressly reflect the authors’ own thinking or reflect deliberations or communications among SEC staff during the meeting.”

Ripple argued that, because only the Court and the SEC have seen the unredacted documents, the defendants must defer to the Court to decide whether the redacted portions are in fact protected by the DPP.

How much will the SEC censor?

“While the SEC has submitted unredacted versions of these notes to the Court, Defendants have not had the opportunity to review the redacted portions and accordingly must rely on the SEC’s representations and the Court’s review of the SEC’s submissions as to whether those redacted portions “expressly reflect the authors’ own thinking or reflect deliberations or communications among SEC staff during the meeting”, stated the Ripple counsel team, led by attorney Matthew C. Solomon.

“Provided that they do, and based on the information currently available to them, Defendants do not presently challenge the SEC’s redactions, however, they reserve all rights with respect to these documents, including as to whether any redactions are appropriate given the lack of any specifically-identified deliberative process to which they related”.

On March 23, the SEC requested the court to redact portions of the handwritten notes taken by SEC staff who attended certain meetings between the SEC and third parties, arguing these portions are protected by the deliberative process privilege (“DPP”).

“The handwritten portions in question expressly reflect either (1) the authors’ thoughts regarding subject matters discussed during meetings and/or (2) deliberations among SEC staff during meetings”, the SEC stated.

The request followed the court’s order that challenged the SEC’s assertion of the DPP, among other privileges. The Court held that the DPP did not shield from production certain sets of notes of meetings between SEC staff and third parties unrelated to Ripple.

The Court also ruled that the SEC may seek leave to redact “any portions of the notes [which] expressly reflect the authors’ own thinking or reflect deliberations or communications among SEC staff during the meeting.”

Besides the redactions, Judge Sarah Netburn is expected to soon decide on the SEC’s motion for reconsideration, Ripple’s motion to strike the supplemental expert report, and Ripple’s motion to compel turn over the Estabrook notes. In the meantime, the court awaits the individual defendants’ answers by April 8.

Read this next


Investors transfers $424 million out of bitcoin funds in six weeks

Despite bitcoin’s decent surge last week, which took the primary cryptocurrency up 70% from the year’s low, digital asset investment products saw outflows for the 6th consecutive week.

Digital Assets

OKX has $9 billion in ‘clean assets’, shows latest proof of reserves

OKX, formerly known as OKEx, has released its fifth proof-of-reserves report amid increasing demand of crypto investors asking for transparency from exchanges they trade with.

Digital Assets

Circle seeks France license to launch Euro stablecoin

Circle, the issuer of the second-largest stablecoin by market capitalization, is seeking to get a dual registration in France as it aims to on-shore its flagship product for the European market – EUROC – a reserve-backed stablecoin.

Digital Assets

CryptoWallet.com Among Minority of Successful Companies to Renew Coveted Estonian License

CryptoWallet.com has successfully renewed its virtual currency service license from Estonia’s FIU for the third year in a row, despite regulatory changes that have made it harder for virtual asset providers to meet the required standards.

Inside View, Institutional FX

Time for brokers to add options trading as volumes explode on high volatility

“Usually, adding options to the typical CFDs and equities offering leads to fragmentation of the platform technology as many brokers will need additional back-end and front-end components, and that could be an important barrier for them. Apart from that, legal hassle and costs associated with proper licensing of market data could be a barrier at first. We are seeing this trend among market data vendors and exchanges to make it easier and more affordable.”

Metaverse Gaming NFT

GCEX’s DeFi education and prime brokerage offering available in DubaiVerse

“We are excited to be part of the developments of The Sandbox and to join other top players in the region, including our regulator, Dubai’s Virtual Asset Regulatory Authority (VARA), as part of the DubaiVerse. This is a great opportunity to bridge the gap between Web3 early adopters and GCEX clients, building a community around Web3 and digital assets.”

Digital Assets

Circle wants Fed to back USDC stablecoin after “very serious stress test” with collapse of SVB

The collapse of Silicon Valley Bank allegedly proves Circle’s point that there is a need for its USDC stablecoin to be backed by the U.S. Federal Reserve with its U.S. dollars held at the Fed.

Digital Assets

Google searches for Crypto.com and Gate.io exploded by 300% amid FTX collapse

“The findings emphasize the importance of staying on top of market trends and being able to pivot strategies quickly and also offer valuable insights into the current state of the market and the behavior of traders, providing investors with valuable information to make informed decisions about their investments.”

Institutional FX

iS Prime reports £35m turnover, £16.2 million pre-tax profits, £37 cash balances

“We have plans in place to evolve the business over the next year, driving further growth for both iS Prime and for our clients.”