Ripple won a discovery ruling that will force the US Securities and Exchange Commission (SEC) to grant the company access to its internal documents in Bitcoin (BTC) and Ethereum (ETH). A report revealed this news on April 6, noting that Ripple expects to find evidence that the watchdog classified XRP, BTC, and ETH as non-securities at some point. In doing so, Ripple hopes to reach the end of the 0.943 billion pound case in which the SEC accused the company and two of its executives of issuing an unregistered security.
According to the report, US Judge Sarah Netburn handed down this ruling in the Southern District Court of New York. The court order will cause the SEC to share your memoranda and minutes in addition to the BTC and ETH documents. However, Judge Netburn did not grant Ripple access to emails shared between SEC staff. He added that documents expressing the SEC’s interpretation or perspective on cryptocurrencies are likely to be discovered and that Ripple’s discovery of such information would be a huge victory.
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Echoing the judge’s sentiments, Matthew Solomon, one of Ripple’s lawyers, said that this development could end the entire case. Solomon believes that if Ripple discovers that the SEC privately denominated XRP as a currency rather than a security, the currency would be outside the purview of the regulator.
A big win for Ripple
In a previous post, Ripple claimed that the SEC was picking winners and losers. The company said it made no sense for the watchdog to tell the public that BTC and ETH are not securities and then turn around to claim the opposite is true for XRP. In response, the SEC said that XRP is not like BTC because Ripple is the only entity that participated in the creation of the coin.
This prompted Ripple along with his co-defendants Brad Garlinghouse and Chris Larsen to file a motion for discovery on March 15. At the time, the defendants argued that the SEC watched XRP grow for more than a decade without formal guidance that the token sale was illegal. The filing added that while the regulator claims that BTC and ETH are cryptocurrencies, it never explained how it came to this conclusion.
If Ripple obtains information to support its angle, the SEC will be forced to give XRP the same treatment as BTC and ETH. Aside from this, the case could cause the SEC to reveal the methods it uses to determine which digital assets are securities, which will be a huge win for the cryptocurrency sector as a whole.
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