Cryptocurrency News

Court forbids SEC to seek legal advice from Ripple

Ripple won another victory in its ongoing legal battle against the United States Securities and Exchange Commission as the court denied the SEC access to Ripple’s legal advice.

Magistrate Judge Sarah Netburn of the District Court for the Southern District of New York Governance On Sunday to reject the SEC’s proposal to force Ripple to discuss the memo Xrp Sales with the firm’s lawyers.

According to the SEC, before proceeding with its token sale in 2013, Ripple could find that XRP could be a protection from its legal advisors. SEC Filed A motion Ripple sought or received on May 7 to compel Ripple to submit all communications discussing any legal advice on whether XRP offerings and sales would be subject to federal securities laws.

In the latest ruling, Netburn referred to attorney-client privilege which means “encouraging full and clear communication between lawyers and their clients and thereby promoting broad public interest in the observance of law and the administration of justice.” The judge stated that Ripple did not waive his attorney-client privilege despite the defendant being able to forgive it under certain circumstances.

The ruling also pays special attention to the rule of fair notice, which Is necessary Courts to interpret ambiguous criminal statutes in favor of defendants. Emphasizing this defense, Ripple claims that the SEC failed to provide reasonable notice to market participants that the regulator considered XRP a safeguard.

“In support, it cites the SEC’s eight-year delay in pursuing enforcement action against Ripple for alleged securities violations – even though XRP was listed on more than 200 cryptocurrency exchanges, billions of dollars of XRP. The sale transaction took place, and Ripple was in agreement with the US Department of Justice and FinCN, which described XRP as a ‘convertible virtual currency’, “Netburn wrote.

The judge said the SEC may renew its motion application if Ripple “extends its beliefs or relies on its privileged communications in support of its impartial notice defense.”

The latest decision marks yet another milestone in the SEC’s fight against Ripple The regulator filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse And executive chairman Chris larson In December 2020, alleging that XRP was an unregistered securities product of $ 1.3 billion. Ripple has succeeded in achieving a series of legal victories, including Winning access to internal SEC discussion History about cryptocurrency in April. Court too Denied to The ability to disclose the financial records of the SEC Garlinghouse and Larsen.

Last week, Garlinghouse confirmed Ripple plans to go public After the firm settled its case with the SEC, by stating That the probability of this scenario was “very high at some point”.