In a new development in the ongoing fight against the SEC which claims XRP is a security, Ripple files a legal challenge against SEC to disclose their internal policies regarding the trading of digital assets of their staff, which would effectively expose it’s employees XRP holdings.
Back in late 2020, the SEC filed a lawsuit against Ripple labs and directors Brad Garlinhouse and Chris Larsen claiming that the native XRP token was sold as an unregistered security, something which the company and directors have vigorously denied.
For many months now, the company has been on the backfoot, and has done it’s best to fight the accusations, but now it appears Ripple is coming out swinging in the latest bout in the ongoing match against the US regulator. Some of the attempts by the SEC to build their case have verged on the incredible, including an attempt to subpoena the entire internal Slack messages of Ripple staff.
Ripple files a legal challenge against SEC to put the regulator under pressure
On Friday August 27, 2021, RIpple filed a motion to force the SEC to disclose it’s internal cryptocurrency trading policies, which will effectively allow discovery into it’s employees XRP holdings, and determine whether or not the SEC has allowed it’s own staff to trade the crypto themselves.
Attorney James Filan recently shared on Twitter the recently filed motion documents which will reveal the information.
The filing, which is entitled Motion to Compel Preclearance Trading Documents has been made public via a dropbox link, and comes after Ripple claims the SEC attempted to meet and confer on this issue with the SEC on four occasions since July 8, but were ignored by the regulator.
Specifically, Defendants seek production of anonymized documents reflecting trading preclearance decisions with regard to XRP, bitcoin and ether, or alternatively, for that information to be produced in aggregate form. Defendants also seek certifications concerning SEC employees’ XRP holdings – again, either with redactions of personal information or in aggregate form.Text from the motion
The motion goes on to state that the court had previously granted them the right to see the trading policies with regards to digital assets after the judge found that the request had met the threshold for relevance. This document, entitled ‘Ethics Guidance Regarding Digital Assets’ showed that the SEC had not imposed any restrictions on it’s staff from crypto trading. This appears to suggest that the SEC had since 2013 not viewed digital assets as securities, including Ripple.
Although this motion, if granted, would expose the SEC’s employees XRP holdings, they would be anonymised. But it doesn’t stop there. The motion would also show the holdings of Bitcoin and Ethereum (ETH) also.
The saga continues…