According to reports, Ripple Labs has won the US Securities and Exchange Commission discovery. The court has ordered the commission to keep internal records of the discussion as to whether XRP Tokens are similar to Bitcoin and Ether, which are not currently classified as securities.
Ripple wins SEC discovery and gains access to the Commission’s internal crypto records
A telephone discovery conference was held on Tuesday for the US SEC case against Ripple Labs. Ripple Labs According to reports “Won Discovery” from the SEC.
US Judge Sarah Netburn said, “I will largely approve of the defendants’ motion.” She then ordered the SEC to hold internal discussions about whether XRP Tokens are similar to cryptocurrencies like Bitcoin (BTC) and ether (ETH) that are not currently regulated as securities.
The judge made it clear that there is no need to establish email communication between employees. However, it is likely that other records such as SEC minutes and memos “expressing the agency’s interpretation or views” can be found on cryptocurrencies.
The commission sued Ripple Labs, its CEO Brad Garlinghouse and co-founder Christian Larsen last December, alleging they sold $ 1.38 billion XRP Token without compliance with federal securities laws. The case is also being overseen by U.S. District Judge Analisa Torres.
Ripple and its executives argue that one of the reasons the SEC failed to take enforcement action XRP for eight years the commission has been confused as to whether XRP was more like bitcoin and ether that were not classified as securities, or like other cryptocurrencies and tokens that were classified as securities.
Matthew Solomon, a Garlinghouse attorney, said ahead of Tuesday’s ruling, “We need this discovery to defend ourselves.” He stated if the defendants find evidence to suggest the SEC was thinking XRP was similar to Bitcoin or Ether, it could be game over for the entire lawsuit.
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