Sarah Tran
Independent Analyst
- Ripple has attempted to question a former SEC member under oath by serving a deposition subpoena.
- Although the identity of the ex-SEC official has not been revealed, the securities regulator has filed a motion to quash the request.
- Given the level of involvement in the case, former SEC chairman Jay Clayton would be a likely candidate.
The legal battle between the United States Securities & Exchange Commission (SEC) and Ripple Labs continues as the blockchain firm requests to bring a former SEC member to testify. The securities regulator initially sued the cross-border remittances firm for its sales of XRP as an unregistered securities offering.
SEC attempts to quash Ripple request
As part of the latest development in the SEC v. Ripple case, the cross-border remittances firm served a deposition subpoena on a former official of the securities regulator.
The deposition request by Ripple stated that it aims to bring a former SEC member to the court. According to James Filan, an attorney familiar with the case:
“This means that Ripple wants to question, under oath (deposition), a former SEC official.”
Filan further added that the identity of the former SEC member remains unknown at this point. Former SEC chairman Jay Clayton, responsible for bringing the case against Ripple in December, would be a likely candidate.
While XRP has been put on trial, as the SEC claims that it is a security, Clayton has previously stated that the agency does not consider Bitcoin and Ethereum to be securities but has not detailed how he has come to this conclusion.
Since Clayton left the agency last year, he has since taken on a new position as a crypto advisor to a hedge fund seeking approval with the SEC for a Bitcoin exchange-traded fund. The former chairman blocked every application for a Bitcoin ETF in the United States during his tenure.
It is important to note that several high-profile members have left the agency in recent months and the subpoenaed figure could potentially be William Hinman, Sagar Teotia or Stephanie Avakian. Clayton remains the most likely candidate as the aforementioned members have had minimal involvement in the case.
The SEC is now attempting to quash Ripple’s subpoena. Filan added:
“The SEC objects to the deposition, the parties could not work out their differences, and they want MJ Netburn to decide if it will happen. We do not know who the former SEC official is yet.”
The securities regulator will file a motion to quash the deposition request on June 24, and Ripple is expected to file an opposition to the agency’s motion to quash on July 1.
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