XRP Lawsuit: Ripple responds to SEC’s opposition in the DPP dispute

By Palak Malhotra
Published August 24, 2021 Updated August 24, 2021
Best Buy In

DeFi Platform

Exchanges

Wallet

SEC vs. Ripple Lawsuit

XRP Lawsuit: Ripple responds to SEC’s opposition in the DPP dispute

By Palak Malhotra
Published August 24, 2021 Updated August 24, 2021

After SEC’s consecutively hard-hitting moves, Ripple is finally back in the playfield with substantial arguments. The latest XRP lawsuit update saw Ripple file a response to SEC’s opposition to Defendants’ motion to compel the production of internal and inter-agency documents in the deliberative process privilege (DPP) dispute.

SEC’s re-litigation efforts in DPP dispute

Ripple argued that the SEC is going in circles, in its efforts at re-litigating the irrelevance of documents that are already marked relevant by the court. The defendants highlighted that the commission has already been compelled by the court several times to produce given data. However, SEC’s constant attempts to argue that DPP has blanket application, but has a reliable process, only raises more suspicions.

“What the SEC does not (because it cannot) defend is its across-the-board assertion of the DPP. Instead, the SEC asks the Court to trust it, order production of nothing, and look at nothing, notwithstanding the SEC’s admission–buried in a footnote–that it improperly designated forty documents as protected by the DPP when that privilege does not apply.”, Ripple states in the response letter.

SEC uncertainty of securities status in DPP dispute

Ripple supported its “fair notice” argument by asserting that the SEC’s internal documents prove the commission’s knowledge of market uncertainty of the status of securities. Furthermore, SEC itself was unclear on the framework and application of U.S. securities legal structure.

The plaintiffs, on the other hand, stressed individual defendants, Garlinghouse and Larsen’s personal knowledge of internal discussions of XRP’s status. But, to prove the defendants’ “reckless” unregistered securities sales, the commission must admit that SEC’s uncertainty of securities law and market status was obvious.

“The point is not that the Individual Defendants relied on the SEC’s internal deliberations. It is that the SEC’s consideration of the status of digital assets under the federal securities laws–and its own uncertainty on that topic and recognition of confusion in the market–speaks to whether the regulatory status of XRP or other digital assets could have been “obvious” to anyone, Back then and even today.”, Ripple counsel adds.

 

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Palak Malhotra
316 Articles
Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0

Loading Next Story