Ripple wins the ruling to expose SEC Docs on Bitcoin and Ethereum!
XRP’s price is up by 22% in the past 24 hours, its highest since 2018.
Ever since December 2020, Ripple Labs has been fighting a $1.3 billion case that was brought against it by the US Securities and Exchange Commission (SEC), which accuses the company of offering an unregistered security in the form of its native XRP token.
Today, the company won a discovery ruling that will require the SEC to hand over internal documents about Bitcoin and Ethereum. Because of this, the general public could soon get a peek behind the curtain of the SEC, which was historically tight-lipped about crypto’s regulatory status.
Last March 15, Ripple Lab together with its co-defendants, CEO Brad Garlinghouse and Executive Chairman Chris Larsen, filed a motion to compel the SEC to produce documents about the SEC’s communication about Bitcoin and Ethereum or its internal communications about XRP.
“For almost a decade, the SEC watched as XRP grew and developed, all the while issuing no formal guidance that its sales may be illegal,” it stated in the March 15 filing addressed to US District Court Judge Sarah Netburn. “The SEC did, however, announce that sales of two similar digital assets — bitcoin and ether — were not securities offerings.”
Through public comments from both former Chairman Jay Clayton and former Director of Enforcement William Hinman, the SEC has made it known that it doesn’t consider Bitcoin and Ethereum, the two biggest cryptocurrencies by market cap, as securities. But the Commission hasn’t issued any formal guidance that explains in detail how it came up with this conclusion. A security is a type of investment contract that implies the expectation of the future profits.
Ripple is looking for SEC mentions of XRP as a “virtual currency” similar to Bitcoin and Ethereum, which will boost its case that it should be treated similarly. It could also get some insight into the agency’s criteria for determining if digital assets are and aren’t securities, which it could then use to make the case that XRP meets those requirements.
“I’m going to grant, in large part, the defendants’ motion,” Judge Netburn stated during the hearing. She also included documents like meeting minutes and internal memos as a part of the order, but not the internal staff emails.
Although the SEC argued against the discovery motion, saying that “the actions of the promoter are what need to be the focus here.”
XRP has risen by 22% in the past 24 hours, reaching $1.06, its highest price in three years.
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