There is a new request for evidence in the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple (XRP). Ripple wants to know if and how the SEC prohibited its officials from trading XRP, Bitcoin and Ethereum.
The crypto industry continues to watch with bated breath the court case that the U.S. Securities and Exchange Commission (SEC) is bringing against Ripple over XRP. A telephonic hearing is scheduled for today, Tuesday, as trial observer James K. Filan made public via Twitter. The hearing is expected to include requests from Ripple, which is insisting that the SEC provide extensive information about how decisions about cryptocurrencies were made internally at the agency. In doing so, Ripple’s defense has picked out a new detail, according to a statement to the court. For Ripple wants to know if and when there were guidelines from the SEC for its officials on the private handling of XRP, but also Bitcoin (BTC) and Ethereum (ETH).
This question is aimed at saying that SEC employees are not normally allowed to deal in securities (securities) because they oversee this very sector. Conversely, Ripple believes that unless officials were specifically prohibited from trading XRP, there must have been a belief within the SEC that XRP should not be classified as securities. In the current lawsuit, however, the SEC accuses Ripple of selling XRP against its better knowledge without authorization and concealing that XRP was very much securities. Ripple rejects this and therefore probably wants to know more about the internal rules at the SEC regarding Bitcoin and Ethereum. At least with Ethereum, there was a clear message from the SEC in 2018 not to consider ETH as a security.
SEC also ramps up pressure in XRP case
Ripple points out in its application almost with relish to have inquired in several meetings in preparation for the hearing on the subject SEC internal rules on cryptocurrencies, without receiving an answer. That is why the formal route is now being taken, he said. In parallel, the SEC is also following up with another request asking that Ripple make video and audio recordings of internal meetings on XRP available. This could show how Ripple discussed the issue of whether to have XRP approved as securities.
It had emerged recently that the judge in charge wants to speed up the process and is working towards a deadline for further requests for evidence. Independent observers have the impression: Both sides (SEC and Ripple) still have blank spots in documents, which they should bring into the process. Accusations of “obstruction of justice” and “filibustering” have also already been made because of this. Experts believe that a ruling in 2021 is no longer to be expected due to the tactics used.
Conclusion: SEC vx. Ripple – trial with explosive power
We have worked out in an analysis why the XRP case is not just about Ripple. The SEC sees its prestige in danger and Ripple wants to protect leading employees as well as avoid possible damage payments of more than 1 billion US dollars. But the crypto industry also hopes that the precedent will indicate whether the SEC will take on other altcoins in order to subsequently demand approval and thus also set the rules for the launch of new cryptocurrencies.
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