SEC Files Motion To Protect “Relevant” Documents in Its Lawsuit Against Ripple

SEC Files Motion To Protect “Relevant” Documents in Its Lawsuit Against Ripple.

The Securities and Exchange Commission (SEC) has filed a motion claiming that Judge Analisa Torres’ recent ruling that led to the denial of Ripple’s executive request to have their charges dropped could make some of its documents completely irrelevant. 

According to a recent motion, the SEC believes that following the recent ruling that occurred over the weekend, documents like the 2018 Hinman’s emails and the Estabrook note could be regarded as irrelevant, adding that it does not have to disclose the content of both documents. 

“The Order answers any question as to whether the SEC’s internal documents are relevant to the Individual Defendants’ scienter. They are not [irrelevant],” the SEC said in its recent motion. 

SEC Objects to Proving Defendants’ Guilt

In response to the court ruling that the SEC should prove that both Brad Garlinhouse and Chris Larsen knew about the legal status of XRP and still disregarded its consequences, the securities agency noted that it only needs to show an instance to corroborate the fact the duo knew that XRP was a security.  

Citing comments made by individual defendants seeking that the SEC must show the status of XRP as security throughout the charging period, the securities regulators said the defendants’ comments on the matter proved that they were aware of Ripple’s legal status. 

With the recent developments, the popular fintech company will be given the opportunity to file a response as this has been the procedure since the case started. 

Judge Sarah Netburn will also need to get a response from Ripple on both filings before deciding on the motion. 

SEC v. Ripple Lawsuit Hurting Investors

The SEC v. Ripple case has taken longer to be resolved than expected. While many expected the lawsuit to be over a few months after it started, the case has lingered for over a year due to a series of motions filed by both parties. 

These consistent delays have been hurting investors who have seen a large chunk of their XRP holdings value evaporate as several U.S.-based exchanges are forced to halt support for Ripple amid the lawsuit. 

Meanwhile, the case is expected to come to an end on or before November 18, 2022, with Ripple suggesting this in a new motion. 

The world is however expecting that the case could end quickly so that investors could get back experiencing a sensational run of XRP.