Ripple Scores Against SEC Again as Court Denies Request for Documents

In yet another win for Ripple, Sarah Netburn, the Court Magistrate has again denied the request of the SEC to produce the documents related to the lobbying efforts of the firm. This came after the court banned the firm from obtaining the legal advice the company sought or acquired regarding the regulatory status of the firm last month.

Court Denies SEC Request for Lobbying Efforts Related Documents of Ripple

Sarah Netburn stated in her June 15 order that the lobbying efforts of Ripple are not relevant and said:

“In the same vein, Ripple’s lobbying efforts regarding the status of XRP are not relevant; and any relevancy argument is outweighed by the burden of production.“

In addition to this, it was revealed in the report that the Securities and Exchange Commission of the United States has claimed that the firm paid one of the ex-chairmen of the Commodity Futures Trading Commission, Chris Giancarlo to publicly extend support to its litigation position.

It said:

“Ripple relies on statements that it paid that official to make to support its litigation position…Since Ripple has put at issue its purported lack of “fair notice” based on the beliefs of market participants, the SEC is entitled to test whether the supposed “confusion” was bought and paid for by Ripple, as opposed to a reflection of genuine market sentiment.”   

SEC’s Request To Compel the Production of Documents Denied by Netburn

The Magistrate Judge has also reportedly denied the request of the exchange commission regarding the compulsion of the production of the documents post-dating its complaint.

Moreover, it should be noted that the request has been discharged without preconception, which means that the regulator can give it another try.

However, the Magistrate Judge has partially allowed the motion of the Securities and Exchange Commission to conduct additional depositions at the same time.