The legal dispute between the US Securities and Exchange Commission and the blockchain payment giant Ripple is making good progress so far. Both parties submit back-to-back requests. However, the final decision of the lawsuit is still pending.
In the most recent development regarding the lawsuit, a motion filed by Ripple was denied by a judge in the U.S. court. Judge Sarah Netburn, the U.S. judge, has refused to accept Ripple Labs’ request to prevent the SEC from accessing foreign information about both the company and its native digital currency, XRP.
In addition, in the recent ruling, the judge said that the United States Independent Agency must also prepare any documents obtained through the use of the formal inquiries. She said in her decision:
“The Court concludes that the SEC’s use of the applications is permissible and does not violate the jurisdiction of the Court.”
Ripple Labs, its chief executive officer (CEO) Brad Garlinghouse, and Chris Larsen, the company’s executive chairman, wrote a joint letter to the judge last month. In that letter, they said the SEC had inappropriately used Memoranda of Understanding (“MOU”) to pursue discoveries outside the FRHC (Federal Rules and the Hague Convention).
Ripple’s lawyers stated in the letter:
“The MOU process involves a foreign securities regulator in the discovery process, which has a significant impact on the recipient of the inquiries, including Ripple’s overseas business partners, and is an unjustified intimidation tactic.”
Judge Sarah Netburn, however, disagreed with this statement and denied it on the grounds that there was no evidence to support this fact.