Ripple has scored another victory in its ongoing legal battle against the US Securities and Exchange Commission. because the court denied the SEC access to Ripple’s legal advice.
The judge, Sarah Netburn, District Court for the Southern Borough of New York,. It was decided on Sunday to deny the SEC’s motion to force Ripple to write memos discussing the XRP sales with the firm’s attorneys.
According to the SEC, Ripple may have been aware that XRP could be a collateral for its legal advisers before the token sale continued in 2013.. The SEC filed a motion on May 7th to compel Ripple to file any notices discussing legal advice Ripple seeks or receives as to whether its XRP offers and sales would be subject to federal securities laws.
In the final ruling, Netburn referred to attorney privilege, which “seeks to promote full and open communication between attorneys and their clients, thereby promoting a broader public interest in law enforcement and the administration of justice.” The judge found that Ripple did not waive attorney and client rights, although the defendants may waive them under certain circumstances..
The judgment also pays special attention to the fair service rule, according to which the courts must interpret ambiguous criminal laws in favor of the accused. By asserting this defense, Ripple claims the SEC failed to provide market participants with a fair notification that the regulator viewed XRP as collateral.
“In support, he cites the SEC’s eight-year delay in taking enforcement action against Ripple for alleged securities violations – even after XRP was listed on more than 200 crypto exchanges, thousands of millions of dollars in XRP sales had taken place, and Ripple had reached an agreement with the US Department of Justice and FinCEN that described XRP as “convertible virtual currency”. “Netburn wrote.
The judge ruled that the SEC can renew its request for renewal if Ripple “Reinforces your beliefs or relies on your privileged communications to aid your fair notification defense.”
The latest decision marks another milestone in the SEC’s battle against Ripple after regulators filed a lawsuit against Ripple Labs., CEO Brad Garlinghouse and CEO Chris Larsen in December 2020, XRP is an unregistered $ 1.3 billion offering. Ripple has achieved a number of legal victories, including access to the SEC’s internal discussion history on cryptocurrencies in April. The court also denied the SEC an opportunity to disclose Garlinghouse and Larsen’s financial records.
Last week, Garlinghouse confirmed Ripple’s plans to go public after the company closed its case with the SECand found that the likelihood of this scenario was “at some point very high”.