Ripple vs. SEC: Judge Overrules Motion For Crypto Transaction Records of SEC Employees
- Ripple’s battle with the SEC has taken a new turn after the court refused the motion to compel the agency to reveal employees’ crypto transaction history.
- Judge Sarah Netburn turned down Ripple’s motion on grounds that the company has not shown that individual trading decisions affect the issues in the case.
- SEC has been embroiled in a long-running legal battle with Ripple Labs since December 2020.
Cryptocurrency experts are keeping a close eye on the legal drama between the Securities Exchange Commission and Ripple Labs as the outcome of the matter could have lasting consequences on the entire space. The latest development in the landmark case is the rejection of the motion to compel the SEC to produce records of its employee’s cryptocurrency transaction history.
Motion Denied
On August 27, Ripple filed the motion before Magistrate Judge Sarah Netburn in a district court in New York, seeking to compel the SEC to disclose its internal crypto policies amongst staff. Details gleaned from the motion showed that its purpose was to unveil the “trading preclearance decisions” and “to seek certifications concerning SEC employees’ XRP holding.”
The court refused to grant the application and Judge Netburn justified the position by stating that the preclearance decisions do not consider whether an asset is a security and the company has not “shown that such individual trading decisions bear on the issues of the case.
As Ripple Labs faces another stumbling block in its legal battle, opinion has been split following the recent decision as analysts keep a close eye on the matter. Generally, the SEC requires staff to obtain approval before trading securities and after investigations began into the activities of Ripple, the regulatory agency barred its staff from trading XRP.
Is The End In Sight?
Ripple’s legal team has stated that it has no plans to reach a settlement in its case with the SEC after being under fire for selling XRP as an unregistered security. However, analysts have observed that legal teams never reveal the intention as it could be construed as a sign of weakness.
A settlement to the matter will bring to an end the legal debacle that has dragged on since last year and has had a negative effect on the price of XRP with the asset currently trading at $1.00.
In the absence of any settlement, the case is expected to drag on till early 2022 before being resolved. The outcome of this matter is bound to have a profound effect on the cryptocurrency ecosystem as the SEC attempts to flex its regulatory muscles.
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