SEC’s Motion to Access Ripple Labs Legal Records on XRP Denied by Court

As the battle between the US Securities and Exchange Commission (SEC) rages, the motion by the SEC to access the legal documents of Ripple has been denied. The motion was made on the 7th of May to have the court order the cryptocurrency development firm to submit relevant documents. SEC demands to ascertain in the sales procedures of Ripple conforms to the Federal Securities law. 

The motion was filed to the United States Magistrate Judge, Sarah Netburn earlier this month. Judge Netburn however denied this move on the 30th of May stating that the requested communications are “protected by the attorney-client privilege.”

The US District Court let out a memo that revealed the SEC seeking for access to “all communications constituting, transmitting, or discussing any legal advice Ripple sought or received as to whether its offers and sales of XRP were or would be subject to federal securities laws.”

Sarah Netburn made it clear that the attorney-client privilege would reduce the right of access to relevant information while stating that the right would be contained to a possible limit. 

Ripple Decries Prejudice

It should be recalled that Ripple Labs won a motion to access SEC files last month in a bid to determine whether the firm was a cryptocurrency or a security as SEC alleged. The legal representatives of Ripple have the notion that the SEC is biased with XRP. The Securities and Exchange Commission has consistently kept Ripple on its toes with lawsuits which has affected XRP and heightened its volatility. 

The possibility of Ripple going public in the near future has been asserted by its CEO Brad Garlinghouse who believes that it would be actualized once the case with SEC is dissolved. However, Ripple Labs has continued to decry that there was no fair notice about the firm’s obligations under the law. 

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