The spat between the American SEC and Ripple has been moving at a fast pace and with it revealing unheard details. Previously, during the hearing in District Court of New York, it was made public that the SEC had been trying to reach out to international regulators asking for their cooperation for “discovery.”
In the latest development around the case, the US regulator submitted their response outlining the two documents filed under the seal as part of the motion. It has now asked the court to reject XRP’s demands for an order asking the SEC to immediately stop their contacts with foreign regulators and turn over already collected information. The regulator’s letter to the court’s judge stated,
Requests or requiring the disclosure of communications with foreign regulators could have broad adverse implications for the SEC across a wide array of governmental actions where the agency pursues cross-border cooperation to protect the United States’ capital markets and its investors.
In its letter, the American watchdog maintained that Ripple has access to all the documents and has full freedom to challenge them during the proceedings. Still, it added that there is no need to stop factual data’s development.
Reportedly, the federal agency approached the regulators in foreign countries, albeit voluntarily. Interestingly, it stated in its letter that the agency’s request for cooperation does not seize with litigation, arguing that the US laws don’t mandate it to turn over privileged information.
While the three foreign regulators have asked the SEC not to disclose their communication, two have categorically refused any cooperation. In response to the regulator’s claims, Ripple’s Brad Garlinghouse revealed that most XRP fans are based abroad, arguing that the token was not quite popular in the US due to uncertain government regulation.