Share:
  • The judge previously ruled in favor of Ripple for the SEC to hand over documents related to Bitcoin, Ethereum and XRP.
  • The securities regulator has stated that it has no documents related to the leading cryptocurrencies.
  • With pushback from the financial watchdog, Ripple could be getting less support for its defense than it was asking for.

Although Ripple Labs has filed a motion to dismiss the Securities & Exchange Commission (SEC) lawsuit, the blockchain firm is faced with multiple challenges. Despite the judge’s ruling to allow discovery of SEC documents on Bitcoin, Ether and XRP, the securities regulator may now have the edge over Ripple.

SEC seeks to bar Ripple from seeking staff materials

The ongoing $1.3 billion lawsuit filed by the financial watchdog in December last year has now taken a turn despite Ripple securing multiple small victories in the case. The SEC has pushed back on revealing documents on cryptocurrencies by denying possession of these materials. 

Judge Sarah Netburn made a ruling in early April that at the time was viewed as boosting Ripple’s defense, saying that the SEC must disclose discussions on whether Bitcoin, Ether and XRP are securities. 

However, the judge has excluded the discovery of internal communications at the SEC. The securities regulator has now taken this ruling as a victory on its part. Judge Netburn said:

I am going to authorize discovery both as to exclusively Bitcoin or Ether communications as well as XRP communications between the SEC and third parties. I am not including SEC-to-SEC internal communications in that ruling.

Former director of the SEC, William Hinman, cited the decentralization of both Bitcoin and Ethereum networks and stated that the two digital assets were not securities. Any discovery made where the SEC expressed equivalency between Bitcoin, Ether and XRP would be critical to Ripple’s defense. 

According to an attorney familiar with the case, Jeremy Hogan said the judge’s ruling was a nuanced decision. Judge Netburn’s verdict on the discovery of communications only included SEC and third-party correspondence but not internal documents. Hogan added that Ripple might get less than they were asking for. The attorney explained:

The Judge is going to tell the SEC to pull out an internal memorandum regarding the security-designation status of BTC and ETH and XRP and disclose them. She will force them to disclose more than they want (which is apparently "nothing"), but less than Ripple is asking for.

Attorney Hogan further believes that the judge will rule on the matter soon while the two parties continue to be in a state of disagreement. 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Ethereum Layer 2 transaction volume surges driven by system upgrades, increasing partnerships

Ethereum Layer 2 transaction volume surges driven by system upgrades, increasing partnerships

Ethereum Layer 2 chains have seen a spike in the total value of assets locked in the past thirty days. The upcoming Dencun upgrade includes EIP-4844, which is key to cost reduction for Layer 2 chains. 

More Ethereum News

BLUR price holds up despite Blast users pulling over $1.4 billion in assets after mainnet launch

BLUR price holds up despite Blast users pulling over $1.4 billion in assets after mainnet launch

Blast, an Ethereum Layer 2 chain, launched its mainnet on February 29. Users that staked their cryptocurrencies on Blast were able to access the funds, move them to dApps within the Blast ecosystem or withdraw. 

More BLUR News

XRP price jumps to $0.62 while Ripple faces pressure from two legal battles

XRP price jumps to $0.62 while Ripple faces pressure from two legal battles

XRP price inched closer to its 2024 high, rallying past the $0.62 level on Thursday. The altcoin was hit by a correction, however, which pulled it back down to the $0.59s early Friday. 

More Ripple News

Injective price could retest $50 as INJ bulls try to overcome critical resistance level

Injective price could retest $50 as INJ bulls try to overcome critical resistance level

Injective (INJ) price has been coiling up in a tight range for more than two months. But the recent developments suggest INJ is readying for a massive volatile breakout rally in the next two weeks.

More Cryptocurrencies News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP