Although the overall crypto market seems to be under downward pressure, Ripple’s native crypto XRP has shot 13.53% making a move to $1. At press time, XRP is trading at a price of $0.99 with a market cap of $44.21 billion.
This latest price rally in XRP comes as Ripple registers another micro-win in its battle against the U.S. Securities and Exchange Commission (SEC). Ripple has managed to stop SEC from accessing any legal records of the company as requested by the regulator.
— James K. Filan (@FilanLaw) May 30, 2021
To bolster its argument in the lawsuit, the U.S. SEC has requested access to Ripple’s legal concerns. The securities regulator said that accessing these documents would help it prove that Ripple was well aware of XRP’s ‘security’ before conducting its 2013 ICO sale. However, the New York judge has denied SEC’s motion that asked Ripple to produce memos discussing the XRP sale.
Judge Sarah Netburn of the District Court for the Southern District of New York has been looking after the legalities involved in this matter. The judge delivered the verdict yesterday on Sunday, May 30. In the public filing, Judge Sarah Netburn notes:
“Ripple asserts that the SEC’s requested communications are protected by the attorney-client privilege, which has not been waived”.
The attorney-client privilege encourages “full and frank communication between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice.”
Taking Up the ‘Fair Notice’ Battle Further
One of the key issues in the SEC vs Ripple battle has been the issuance of ‘fair notice’. Ripple claims that the SEC has never issued a ‘fair notice’ whether if the blockchain startup was violating any securities laws for eight long years. At the same time, FinCEN and the U.S. Justice Department had declared XRP a convertible virtual currency.
Ripple is now working to move this case with a focus on SEC’s inactions and a sudden change in the state of mind. However, judge Netburn noted that she’s not taking any position if Ripple’s defense is clearly identifiable. The judge said:
“I reach only the limited question of whether Ripple put its subjective state of mind or advice of counsel at issue merely by raising the defense, thus waiving its privilege. I conclude it did not.
Accordingly, the SEC’s motion is DENIED. If, at some later date, Ripple raises its good faith beliefs or relies upon its privileged communications in support of its fair notice defense, the plaintiff may renew its application to the Court”.