Sequence of decisions favorable to Ripple in the SEC lawsuit could heat up the XRP market
The court has provided consecutive rulings over the past 24 hours in the ongoing legal battle between Ripple Labs, its executives and the US Securities and Exchange Commission (SEC).
Granted, denied, denied, denied. This is precisely what the court’s latest decision on the SEC motion to look at additional depositions, search the registry for more custodians, force the blockchain company to produce post-complaint transactions and logs of lobbying efforts.
“The motion is GRANTED IN PART and DENIED IN PART.”
In fact, even the SEC’s first request was granted restrictions. Judge Sarah Netburn only allowed the regulator to depose five additional people instead of six. The five people include Ethan Beard, Ron Will, Christian Gil, Phil Rapoport and Ryan Zagone. With respect to the sixth deponent, the court decided:
“The SEC’s request for a sixth deposition is dismissed without prejudice as unripe.”
In addition, the court also denied the agency’s appeal to search its lawyers’ records. The judge argued that the above-mentioned requests were likely to be “privileged communications” that would be “cumulative or duplicated” of the research already carried out, making the entire process “highly onerous”.
With respect to lobbying efforts, the court ruled:
“Ripple’s fair warning defense focuses on the SEC’s activities, not its own behavior. In the same vein, Ripple’s lobbying efforts regarding XRP status are not relevant; and any argument of relevance is outweighed by the weight of production.”
This particular decision managed to attract the attention of several people in the community. Popular attorney James K. Filan, for example, said the aforementioned statement is a “good sign” for Ripple’s fair warning defense.
In what was another recent development, the court also gave the SEC additional time to extend its discovery deadlines. Drawing parallels, the lawyer Jeremy Hogan said:
“I’m getting a ‘vibe’ from the judge that she’s enjoying the ‘Fair Notification Defense’… That takes some of the pain out of the 60-day extension.”
In addition, attorney John E. Deaton opined that the court is being “fair and balanced” with respect to the rulings. He further emphasized that the judge is stressing that the fair warning defense is centered on the SEC’s activities, not Ripple’s knowledge or behavior, and the court dealt a “big blow” in the SEC’s case. he added:
“In short, the SEC is also on trial.”