XRP Lawsuit: SEC files for seal, agreeing with Ripple on irrelevance of third-party identity

The latest update in the XRP lawsuit saw the SEC follow Ripple’s footsteps and file for seal in the Interrogatories Dispute. The plaintiff stated that it agrees with Ripple’s Motion to Seal exhibits in connection with the Interrogatories Dispute regarding the application of the Howey Test to sales of XRP over the last 8 years.

“The SEC agrees with Defendants that the identities of third parties are not relevant to the Court’s decision regarding Defendants’ Motion to Compel…permitting sealing of portions of documents revealing identities of individuals and entities where the public interest in such information was low.”

SEC avoids setting legal precedent with seal

The settlement speculation only gets validated as SEC and Ripple consistently come together to seal evidence. It could potentially mean that the SEC is using the seal to avoid setting any legal precedent through the XRP lawsuit so that the case’s example cannot be used by anyone, including SEC oppositions in the foreseeable future.

Earlier in the interrogatories dispute, the SEC appealed for an extension to file for its letter motion to seal. More suspicion was raised as the SEC confirmed that they will be conferring with the defendants before adding portions to seal to its appeal. As the portions to seal were pertained to the third parties’ identities, the SEC approached the court for merit sealing.

The seal and settlement speculation keeps moving in circles, bringing us back to the SEC approaching Ripple for a seal to protect certain eminent individuals’ secrets hidden in the exhibits. Furthermore, the lawsuit also saw SEC file a letter stating that it “does not oppose” Ripple’s request to seal parts of certain exhibits in the Interrogatories dispute.

Odds bet against the SEC

The SEC appears to be losing as the case unfolds, therefore, the commission is considering a settlement with the defendants to bury a lawsuit that is digging up ancient past. Last week, the defendants filed a letter appealing the addition of three documents to be reviewed in camera based on a privilege log provided by the SEC after the August 31, 2021, telephone conference.

The SEC saw havoc as these documents also included an email chain that could discredit the SEC’s former “just an opinion” argument regarding the 2018 Hinman speech.