In a significant win for Ripple in its lawsuit against the SEC, the Judge has denied the Commission’s motion to compel the payment processor to produce internal information discussing XRP sales with its legal team. The news coincided with the surge in XRP’s price as it increased by double-digits in 24 hours. Earlier, the SEC asked the Court to order Ripple to produce all relevant documents of legal, internal communication that the agency believed would determine whether the company’s XRP sales were compliant with federal securities law.
US court denies SEC’s motion.
The US Magistrate Judge Sarah Netburn has sided with the blockchain-based payment processor. According to the verdict from this weekend, the Judge ruled against the SEC’s motion. By referring to the attorney-client privilege, which Ripple has used for its defense, Judge Netburn said it’s meant to “encourage full and frank communication between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice.” Although this privilege can be waived on certain occasions, the Judge said this is not the case with the legal battle between Ripple and the SEC.
Ripple continues to fight SEC the lawsuit.
US SEC has continued with its timid approach towards cryptocurrencies. As reported earlier, US SEC chief Gary Gensler has said that cryptocurrencies need tighter regulations. In a remark for the House Appropriations Committee subcommittee, the SEC chief noted that the cryptocurrency market poses significant policy and investor protection questions, indicating the need for tighter regulations. “I look forward to working with fellow regulators and with Congress to fill in the gaps of investor protection in these crypto markets,” Gensler noted.