Ripple has been denied their request to stop the US Securities and Exchange Commission from sending out Memorandum of Understanding (MoU) requests to other foreign securities regulators by Magistrate Judge Sarah Netburn.
Netburn denied Ripple’s request after the virtual currency developer made claims that the requests made by the SEC were intended to intimidate their foreign business partners. The Magistrate however stated that the claims are not backed with substantial evidence to showcase the wrong motives SEC intends.
The Magistrate permitted the move by the SEC, stating that the defendant intends to pressure the regulatory agency to employ the less conventional and slow Hague Convention process in the matter.
SEC is expected to exhibit the documents that came about in response to their MoU requests. However, they can choose to leave out sensitive documents if they deem it so. SEC had stated that within the month of April, about three counterparts have failed to offer any assistance.
Ripple Labs Believes the Ongoing Suit is Simply Picking on Them
As the legal battle between Ripple and the Securities and Exchange Commission rages, the virtual currency developer believes that the suit against them has gone over if it is a security.
Ripple had begun a discovery motion to peruse SEC documents in relation to XRP, Ethereum and Bitcoin. The reason for the motion is that Ripple believes that Bitcoin and Ethereum have been exempted from similar regulations.
The motion which was partially granted by the Magistrate was however revoked, stating that the firm cannot get access to the personal data from the SEC’s staff.
In swift response, the crypto firm CEO Brad Garlinghouse and co-founder Chris have triumphed equally by stopping the SEC from requesting its own personal bank reports.
Amid legal battles the San Francisco-based Ripple Labs has hired a new CFO, Kristina Campbell as announced on Tuesday.