In the legal battle between the US Securities and Exchange Commission (SEC) and Ripple, the two sides continue to exchange blows constantly. In a letter sent to Magistrate Judge Sarah Netburn, Ripple’s lawyers write that the Securities and Exchange Commission’s refusal to publish its documents on the classification of Bitcoin (BTC) and Ethereum (ETH) is based on “mischaracterizing” the facts and “self-deception in the outcome of this case.” …
Ripple’s lawyers explained why internal SEC documents on BTC, ETH and XRP are so important. The point is that Ripple’s attorneys are looking for evidence that the agency contributed to “widespread market confusion” regarding XRP:
Instead, defendants are looking for documents that directly or indirectly reflect how XRP has been valued in the market. The Securities and Exchange Commission cannot deny that it is the coordinator for inquiries as to whether XRP is a security.
Prominent lawyers Jesse Hines and Jeremy Hogan praised the letter from Ripple as excellent. At the same time, Hines tweeted:
This answer is in my personal and not legal opinion.
Hogan statedthat after this letter, the judge will have no choice but to grant Ripple’s petition and support the disclosure of the documents.
I read the Defendant’s response letter in their quest to obtain SEC records related to Bitcoin and Ethereum (which the SEC publicly stated are not securities). Bottomline: I would be shocked if the Judge does not make the SEC provide these documents. (1/4) https://t.co/lJzqRAkZ0P
— Jeremy Hogan (@attorneyjeremy) March 24, 2021
I will be shocked if a judge suddenly forces the SEC to provide these documents.
In addition, after analysis, Hogan concluded that the lawsuit against Brad Garlinghouse and Chris Larsen triggered the knowledge of wrongdoing and “this turns into a big mistake for the SEC because this is what makes these documents relevant. How big the error will be will depend on what is in the documents. ”
Another very interesting thing hidden in a footnote: The SEC informed the retail XRP holder who sent the SEC an email that it has NOT decided if XRP is a security … wait … OCTOBER 2020! They must have been preparing a lawsuit in October!
Thus, the SEC formed its opinion on the status of XRP approximately 2 months before the filing of the lawsuit. In such a case, the SEC will probably find it difficult to object in court:
Accordingly, if internal documents disclose (and they undoubtedly will) that the SEC could not reach consensus on which digital currency is a security and which is not, it can hardly be argued that market participants knew what the law requires.
Last but not least, Hogan also points out another important aspect that could win a judge over to Ripple’s side.
Finally, the SEC did NOT help itself by telling the judge half-truths (See Section III). You cannot tell the Court that you “provided” 97,000 documents when HALF of those documents were made available to Ripple before the SEC litigation! This is a surefire way to piss off a judge!
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