The SEC vs. Ripple case takes a surprising turn as Ripple tries to uncover XRP holdings from SEC employees ⋆ ZyCrypto
The case between the SEC and Ripple is picking up momentum as both sides have pushed forward with motions this week to force the other side to come up with documents that will have a powerful impact on the case.
On Friday, Ripple filed a motion to force the SEC to disclose whether or not its employees can trade XRP and other digital assets. Attorney James K. Filan of Filan LLC, an attorney interested in the case between the SEC and Ripple, announced that the SEC motion gave until September 3 to respond.
The legal order comes in response to previous meetings Ripple had with the SEC on the issue that have yielded no results. The motion is intended to build on Ripple’s defense that the SEC was not adequately informed that selling XRP was tantamount to selling an unregistered security.
In particular, the motion, filed on behalf of Ripple Labs Inc. and its co-founders Bradley Garlinghouse (Ripple CEO) and Christian A. Larsen (Ripple Executive Chairman), seeks to find evidence that the SEC has given its employees clearance on Bitcoin , Ether and XRP. Therefore, the filing seeks to show that the SEC was up to Jan.
Although the SEC’s response time has not yet expired, regulators are also moving forward with their lawsuit and have filed a motion to force Ripple to create “relevant video and audio recordings” of meetings. In the motion filed on Monday, the SEC claimed it learned of the footage it requested from a “key former Ripple employee” in a statement earlier this month.
The SEC’s motion is unsurprising as it has been speculated that they may want to approach the case from a marketing rather than a technical perspective.
Keep in mind that the SEC previously filed a request to acquire Ripple’s internal communications information. Slack, corporate message and task organizer software that also uses Ripple, could be a real weapon for the SEC argument. Attorney Jeremy Hogan stated at the time that the marketing approach the SEC was taking was underpinned by the footnote in the motion that stated that the messages they wanted to access were from members of Ripple’s marketing team, from members of the XRP marketing teams and Ripple’s finance team.
He adds that these people had nothing to do with whether or not XRP was technically a security, but rather with whether XRP was being “marketed” as a security or a stock option in the company to raise money. Hogan also recapitulated this in his most recent analysis, in which he stated that the SEC may be willing to sacrifice its fair termination position in order to peg Ripple on securities marketing fees.
The case seems to be nearing a climax, and some observers expect an agreement between the two parties soon.