The SEC’s efforts to defend Ripple’s “lack of trial and fair announcement” should be rejected, according to a new court filing by Ripple. According to a court ruling, the communications from Ripple’s XRP are going to the US Securities and Exchange Commission.
The U.S. Securities and Exchange Commission has been unable to obtain legal notices requested or received from Ripple Labs to determine whether XRP sales are subject to federal securities law. The SEC’s decision to invalidate Ripple’s affirmative defense does not meet “exacting” legal standards, according to defense lawyers for the San Francisco-based payment technology company.
Ripple’s attorney and client privilege
The SEC and Ripple also attempted to use the SEC’s Memoranda of Understanding (MOU) to obtain data on Ripple and XRP exchanges outside the United States. According to a document issued on May 30, Judge Sarah Netburn of the District Court for the Southern District of New York rejected a motion filed earlier this month to confirm Ripple’s legal privilege. Ripple’s legal team is also working to strengthen the defense against fair terminations.
The Securities and Exchange Commission (SEC) is seeking an order requiring Ripple Labs (“Ripple”) to prepare all communications containing, conveying, or discussing any legal advice that Ripple may have regarding whether its XRP offerings and Sales obtained or received or not are subject to federal securities laws.
“The privilege was waived by challenging Ripple’s bona fide belief that it was compliant with the law through Ripple’s fair announcement defense.“Stated the SEC in the memo. Ripple did not have adequate disclosure from the SEC as to whether XRP was an acceptable offering, according to the fair’s defense.
The SEC claims Ripple is aware of XRP’s legal status due to more than 70 similar enforcement actions against other crypto companies. Ripple’s case is based on Upton v. SEC, a case where a federal court upheld a fair dismissal defense despite the SEC’s argument that it was an “outlier case due to extremely different circumstances.”
XRP is currently the 6thth largest cryptocurrency. The value of the coin is $ 1.01 at the time of writing, up 11.36%. In the past 24 hours, the trading volume was $ 6,060,875,795 along with a market cap of $ 46,631,585,959.