Just-In: SEC Claims Internal Documents Irrelevant In XRP Vs SEC Case

The U.S. Securities and Exchange Commission (SEC) on Monday filed a letter to Magistrate Judge Sarah Netburn of the Southern District of New York, claiming that a previous order makes internal documents from the SEC irrelevant to the case against Ripple.

The letter states that according to an order by Judge Analisa Torres, former SEC Director William Hinman’s emails and the Estabrook notes are not required to be disclosed under the case.

Move could deny XRP access to crucial evidence

In light of Judge Torres’ order, the SEC is now seeking a reconsideration and clarification of the Court’s January order, which required the SEC to release drafts of former Director Hinman’s speech and related internal communications. The regulator also opposed Ripple CEO Brad Garlinghouse’s motion challenging its deliberative process privilege (DPP), under which it is not required to release internal documents due to its status as a government body.

Hinman’s speech, which is on whether ether is a security, has been sought as part of the lawsuit. The Estabrook document contains notes of a 2018 meeting between former SEC Commissioner Elad Roisman and  Garlinghouse.

Ripple has sought the documents to prove that its executives were acting in line with U.S. regulatory requirements.

#XRPCommunity #SECGov v #Ripple #XRP SEC files letter claiming Judge Torres's Ruling on the Motions to Dismiss makes SEC internal documents, including the Hinman emails and the Estabrook notes, irrelevant and that the SEC should not have to disclose them.https://t.co/MjYmpcu28o

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) March 15, 2022

On March 14, the court ordered the parties to meet and determine what additional discovery, if any, is necessary and file a joint letter by March 23, 2022, informing the Court accordingly.

On Friday, Judge Torres issued two rulings on motions filed in the lawsuit against Ripple Labs.

Ripple argued that it was not given fair notice by the SEC that it would consider XRP as a security, thus denying the company due process. Judge Torres denied the SEC motion to dismiss this defense, and by doing so affirmed that the defense is viable in the suit.

However, the judge also denied a motion filed by Ripple CEO Brad Garlinghouse and executive chairman Chris Larsen to dismiss the case against them for the alleged unregistered securities sales.

Magistrate Judge Netburn has stated she will not decide on either motion until receiving Ripple’s response.