Ripple Labs has gained access to US Securities and Exchange Commission documents “expressing the agency’s interpretation or views” on cryptocurrencies.
Under Law 360, U.S. Judge Sarah Knightburn agreed to the defendants’ request “for the most part,” indicating that SEC records or cryptocurrency notes could be discovered. Netburn assured that no employee email is required.
Netburn also allowed the SEC and Ripple to settle disputes with a judge.
In December, the SEC filed a lawsuit alleging that Ripple Labs CEO Brad Garlinghouse and chairman Christian Larsen raised $ 1.38 billion through an unauthorized security offer in August 2013.
Ripple disputed the SEC’s claim that XRP was similar to Bitcoin or Ethereum, both of which were classified as goods by the SEC, and also criticized the agency’s eight years in filing a complaint against Ripple.
Law360 notes that Garlinghouse’s lawyer, Matthew Solomon, believes it is “game over” for the SEC’s lawsuit if they find evidence that the regulator considers XRP to be equal to BTC or Ether, and notes that the SEC’s regulatory scope does not exceed shares.
Since it took the SEC eight years to file a complaint against Ripple, the company’s attorneys also believe that they can undermine the SEC’s claims if they can provide documents showing conflicting decisions regarding the regulator’s assessment for XRP.
“We need this discovery to protect ourselves,” Soliman said.
However, SEC lawyer Dogan Bliss criticized the defendants for trying to “bring the commission to justice” by examining its internal deliberations instead of defending its alleged illegal activities, saying:
“Promotional activities are what you should focus on here.”
During the trial, Judge Knightburn noted a significant public interest in the hearing, with more than 500 people calling public phone numbers to monitor the progress of the case. The judge also warned the person to pass on the audio recording of the hearing in violation of New York City rules.
The judge said: “Anyone involved in such conduct can be prosecuted.”
On April 6, attorney Jeremy Hogan, who is following the case with interest, took to Twitter to share a 2016 suspension and ceasefire order aimed at an adviser to Ripple Labs at the time, who described the company as a “cryptocurrency company.”
“The Securities and Exchange Commission must now explain to the court how ‘digital currency’ was transformed into ‘digital security,'” Hogan added.
XRP’s price has risen this month despite a complaint from the SEC, with the token almost 100% since the beginning of April. XRP has risen almost 20% in the last 24 hours and is currently trading at $ 1.08.