XRP Lawsuit: Judge grants motion to seal, but SEC stance unclear

In XRP Lawsuit’s latest update, Judge Netburn has granted Ripple’s Letter Motion to Seal Exhibits. Meanwhile, the SEC has requested an extension to respond to Letter Motion to Seal.

“The documents may be filed under seal on an interim basis subject to further reconsideration by the Court when it considers the merits of the underlying motion.”, said Judge Netburn.

Judge Netburn grants Letter Motion to Seal. "The documents may be filed under seal on an interim basis subject to further reconsideration by the Court when it considers the merits of the underlying motion."

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 11, 2021

Extension granted to the SEC

Following Ripple’s footsteps, the SEC has also filed an extension request for two business days. The extension plea requests until Tuesday, August 17, 2021, to submit a motion to seal the exhibits filed with Ripple’s letter challenging the SEC’s improper assertion of the Deliberative Process Privilege. Along with granting Ripple’s Motion to Seal, Judge Netburn has also granted SEC’s request for extension.

“The SEC’s deadline to file a motion to seal, if any, concerning the exhibits filed with Defendants’ August 10, 2021 letter motion (ECF No. 289) is extended to Tuesday, August 17, 2021.”, Judge Netburn added.

Judge Netburn grants Letter Motion for Extension of Time. "The SEC's deadline to file a motion to seal, if any, with respect to the exhibits filed with Defendants' August 10, 2021 letter motion (ECF No. 289) is extended to Tuesday, August 17, 2021."

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 11, 2021

Settlement speculation between Ripple & SEC

The speculations of a potential settlement rose upon Ripple’s Motion to Seal. Brad Garlinghouse’s counsel filed Motion to Seal Exhibits including parts of William Hinman’s deposition transcript, which were one of the most prominent documents for Ripple to win the lawsuit.

The potential internal settlement between Ripple and the SEC conjecture was highlighted instead of Ripple’s surprising agreement to file Exhibits under seal. This raises suspicion at the efforts to safeguard the named SEC officials from facing any more public scrutiny. However, Ripple has argued that the motion to seal is to strengthen the ethical criteria of jurisdiction over a commercial showdown.

“Each discovery materials exchanged between the parties through “compulsory process to facilitate orderly preparation for trial, not to educate or titillate the public.”, a letter requesting a motion to seal stated.

Ripple’s Motion to Challenge SEC on Exploitation of DPP

Ripple’s counsel filed a letter motion Challenging SEC’s improper assertion of privilege, principally deliberative process privilege (DPP), after the preliminary motion to seal. The misuse of DPP by the SEC is filed over pending documents from the SEC, that are relevant to the lawsuit. Ripple argues that the plaintiff has failed to produce vital data despite two consecutive orders.