XRP Lawsuit: Does the SEC opposition to Ripple’s seal nullify settlement speculations?

The latest XRP lawsuit development saw the SEC file an opposition to Ripple’s Motion to seal exhibits. SEC stated that Ripple’s seal seeks to permanently redact portions of the SEC’s Motion to Compel in the Slack data dispute. Additionally, Ripple also aims to seal in their entirety seven exhibits the SEC filed under seal to back its Motion to Compel.

The SEC has argued that the defendant’s Motion to Seal fails to meet the criteria set forth in the Lugosch v. Pyramid Co. of Onondaga. The criteria require sealing of “judicial documents” to be “narrowly tailored”. However, Ripple is demanding a “blanket seal” from public presumption, regardless of the high level of public interest in the case.

“Given the extraordinary level of public interest and high stakes of litigation, Defendants frequently comment publicly on the merits and substance of this lawsuit…But this makes strict adherence to the very narrow sealing standard set forth in Lugosch ever more important. Defendants would exercise their First Amendment right to speak freely about the lawsuit, but then deny the public the right under the same Amendment to access materials the Court is considering in ruling on the parties’ motion.”, SEC stated in the opposition letter to Motion to seal.

SEC revealed surprising data in Opposition to Motion Challenging DPP misuse

In the SEC’s former filing of opposition against Individual Defendants’ Motion challenging the SEC’s improper assertion of the Deliberative Process and other privileges (DPP), the plaintiff mentioned Hinman’s meeting with the defendants. The plaintiff highlighted that Ripple has stroked the most probative evidence, i.e., former SEC Division of Corporation Finance Director, William Hinman’s deposition testimony that he met with Ripple representatives.

In the mentioned meeting, Hinman asserted that he alerted against Ripple’s sales of XRP by defining them as sales of securities. He further advised Ripple to stop the unregistered sales. After Hinman and Ripple’s meeting data disclosure, it now appears that the SEC has the ball in its court. However, the defendant’s response remains unclear as of now. Ripple, that until now appeared to have the winning stance in the lawsuit, could be pleading for a settlement soon.