• The attorney-client privilege protects Ripple‘s communications.
• Analysts are saying that this ruling is highly significant to Ripple’s fight against the SEC.
• The SEC also tried to access the personal finances of the CEO, Brad Garlinghouse, and its Executive Chairman, Chris Larsen.
Earlier in May, the US Securities and Exchange Commission had filed a motion against the cryptocurrency company Ripple. As per the most recent verdict by Judge Sarah Netburn, the SEC has been denied access to Ripple’s legal communication data. Earlier this year, Brad Garlinghouse said that the company is ready to move on without XRP in case they lose against the SEC.
SEC Files Lawsuit Against Ripple to Access its Communications
The SEC had filed a motion to get their hands on communications constituting, transmitting, or discussing any legal advice regarding XRP’s sale or offers to be subject to the federal securities laws. The attorney-client privilege protects Ripple‘s communications. Hence, the blockchain firm confronted the SEC because the contacts could not be accessed because of the attorney-client privilege. In defense, the SEC said that Ripple had its attorney’s advice at issue by stating a fair notice defense. Moreover, the SEC added that they were entitled to test as well as repel Ripple’s statement.
Despite a High Profile Lawsuit Against it, Ripple Remains Optimistic
Analysts are saying that this ruling is hugely significant for Ripple’s fight against the SEC. Attorney Jeremy Hogan in a tweet announced that the Judge had denied SEC’s motion to compel production of Ripple’s lawyer opinion letters. He added that it was essential as the Judges state that Ripple’s subjective beliefs regarding XRP are not relevant to the Fair notice defense. This blocked the road for SEC as the regulator wanted to use it to fight Ripple’s guard.
In December 2020, the regulator had again filed against Ripple, accusing the company of selling unregistered securities XRP and raising around $1.3 billion funds. Moreover, they also tried to access the personal finances of the CEO, Brad Garlinghouse, and its Executive Chairman, Chris Larsen. However, once again, the SEC failed in its pursuit. However, the blockchain firm is quite positive despite the high-profile lawsuit and plans to go public soon after its settlement with the SEC.