XRP jumps 13% to $1 when Ripple blocks the SEC from accessing legal records
While the overall cryptocurrency market appears to be under downward pressure, Ripple’s native cryptocurrency XRP soared 13.53% to $1. So far, XRP is trading at $0.99, with market value in US$44.21 billion.
The latest price hike on XRP comes as Ripple records another micro-victory in its battle with the US Securities and Exchange Commission (SEC). Ripple was able to block the SEC from accessing any of the company’s legal records, as requested by the regulator.
— James K. Filan (@FilanLaw) May 30, 2021
To bolster its argument in the lawsuit, the US SEC requested access to Ripple’s legal issues. The securities regulator said accessing these documents would help prove that Ripple was well aware of XRP’s ‘safety’ before conducting its 2013 ICO sale. However, the New York judge denied the SEC’s motion asking Ripple that produce memos discussing the sale of XRP.
Judge Sarah Netburn of the District Court for the Southern District of New York is handling the legal aspects involved in this matter. The judge gave the verdict yesterday on Sunday, May 30th. In the public proceeding, judge Sarah Netburn observes:
“Ripple claims communications requested by the SEC are protected by attorney-client privilege, which has not been waived.” Lawyer-client privilege encourages “full and frank communication between lawyers and their clients and thereby promote broader public interests in law enforcement and the administration of justice.”
Continuing the ‘fair notice’ battle
One of the main problems in the SEC vs. Ripple battle was issuing a ‘fair notice’. Ripple claims the SEC never issued a “fair notice” if the blockchain startup had been violating any securities law for eight long years. At the same time, FinCEN and the US Department of Justice declared the XRP a convertible virtual currency.
Ripple is now working to move this case with a focus on the SEC’s inactions and a sudden shift in mood. However, Judge Netburn noted that she is taking no position if Ripple’s defense is clearly identifiable. The judge said:
“I come only to the limited question of whether Ripple put his subjective mood or counsel from a lawyer into question by raising the defense, thereby relinquishing his privilege. I conclude not. Consequently, the SEC’s motion is DENIED. If, at any later date, Ripple presents its beliefs in good faith or relies on its privileged communications in support of its fair notice defense, the plaintiff may renew his application to the Court.”