Another win for the Ripple team and the XRP community could not have been more delighted. After the United States Security and Exchange Commission (SEC) had requested access to Ripple’s own due diligence regarding XRP, on Sunday, Judge Sarah Netburn denied the motion by stating:
“Ripple asserts that the SEC’s requested communications are protected by the attorney-client privilege, which has not been waived.”
The SEC had wanted Judge Netburn to force Ripple to produce records of any legal advice it received around the sale of XRP tokens. By doing so it wanted to know whether the company was aware of federal securities law to comply with. According to the SEC, Ripple ignored the legal advice it received and went ahead with the sales of XRP.
Judge Netburn clarified that her verdict only applied to this specific issue and said:
“The Court takes no position about whether Ripple’s pleaded defense is cognizable or if it will prove meritorious.”
With this development and another loss, the SEC will have to step up their game and need to shift to another gear in order to still win the case. Jeremy Hogan, one of the people closely following the lawsuit said on Twitter:
Judge DENIES the SEC's motion to compel production of Ripple's lawyer opinion letters. Very important because the Judge states Ripple's subjective beliefs re XRP are NOT relevant to the Fair Notice defense, blocking the road the SEC wanted to use to fight the Defense. https://t.co/MHsx569BmO
— Jeremy Hogan (@attorneyjeremy1) May 30, 2021
While many following the lawsuit are expecting a settlement to be reached, some believe that Ripple is not considering this until there will be regulatory clarity provided by the SEC over XRP and cryptocurrency. The question remains if the court is the place for this or that ultimately Congress will decide over this.
Although Ripple has celebrated many wins in the case so far, the $1.3 billion lawsuit is likely not coming to an end before the end of the year, considering the recent plays made by both parties.
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