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Ripple sees ‘a very big win’ in the legal fight with the SEC

Updated: Jul 25, 2024
Published: Apr 13, 2022
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The high profile legal battle between the Blockchain payment firm Ripple Labs, Inc. and the United States Securities and Exchange Commission (SEC) has taken a sharp turn after the presiding judge Sarah Netburn made a ruling that led to “a very big win for Ripple,” according to a Ripple Community lawyer.

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Court denies the request by the SEC

The suit filed by the SEC against Ripple and its executives Brad Garlinghouse and Christian Larsen for allegedly selling “unregistered securities” in 2020, has been a constant subject of discussion in the crypto community. The recent progress includes the presiding judge denying the SEC’s request to consider shielding documents under privilege. The documents are related to the speech of Ripple’s former director Willian Hinman in 2018, who stated that Bitcoin and Ethereum are not securities.

The SEC previously did not object to those documents falling outside of the deliberative process privilege (DPP) protection since they appeared to be about Hinman's personal views rather than Ripple principles. However, it later shifted its stance, claiming that the speech reflected Ripple's policy and thus should be shielded.

Judge Netburn stated that the SEC should not misrepresent itself by contradicting its own statements. She writes:

“The SEC seeks to have it both ways, but the Speech was either intended to reflect agency policy or it was not. Having insisted that it reflected Hinman’s personal views, the SEC cannot now reject its own position.”
James K. Filan, a Ripple community lawyer, tweeted about the progress and summed up the important aspects of the Judge’s reaction to the reconsideration.

Is the case coming to an end?

Despite this potentially significant decision, the case is still underway, and the SEC now has two weeks to file an appeal. However, in November last year, Brad Garlinghouse, CEO of Ripple said that the SEC case will be closed this year. He repeated his statements in a recent document shared by attorney Jeremy Hogan, by saying that the company is experiencing real positive progress and is aiming to conclude the case by November 2022.

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