The SEC Ripple saga continues as the agency writes a letter to Judge Sara Netburn to prevent disclosure of certain documents Ripple has requested.
According to a recently released letter from former Fed attorney and currently part of Ripple’s legal team, James K. Filan, the agency has asked the court not to breach the SEC’s privileged data as it is used for the defendant’s offered defense and his DPP Status (Deliberative Process Privilege).
Data is protected under DPP
The SEC stated in the letter that the data that Ripple is requesting is pre-decision-making and deliberative, which is why data enjoys the protection of the deliberative process privilege (DPP). The SEC alleged that Ripple was taking the defense, which is completely inadequate since the defendant’s motion was asked:
“the SEC staff … asked if XRP and other digital assets were securities “and therefore the defendants are not liable.”
The SEC further advised the judge that the forced release is not only protected by Labor Product Doctrine and Attorney-Client Privilege (in addition to dpp), but that the release of the agency’s pre-ruling considerations regarding digital assets will be productive Agencies considerations would undermine staff and staff involved in regulatory activities, potential cases and investigations under consideration relating to the sector in which the regulations have a significant impact on the market.
Relevance of the forced release
Citing the above excerpt from Ripple’s Motion 4, the SEC stated that the data requested by the defendant is not relevant, even given its own theory of relevance. SEC only wrote one entry in the entire Appendix A (Ripple asked for production), which deals with the question of whether the XRP transactions are securities or not.
SEC urged the court
“The court should not penetrate the DPP and other SEC privileges, especially if the documents are irrelevant to the defendant’s offered defense“,
It is worth recalling that in ruling on Ripple’s motion, the court forced the SEC to create Appendix A, which would be reviewed on camera by Judge Sara Netburn.