The most recent court decision could have swung the case in Ripple’s favor.
The SEC’s case against Ripple has been requested to exchange records by the judge presiding over the case. These documents would expose the SEC’s position on whether or not cryptocurrencies are securities.
The Securities and Exchange Commission (SEC) of the United States filed a legal complaint in December 2020 claiming that Ripple and its executives earned more than $1.3 billion by selling XRP as unregistered securities.
U.S. Magistrate Judge Sarah Netburn issued an update to the pending case, ruling that the SEC must share all official documents expressing the regulator’s views about why other digital assets such as Bitcoin (BTC) and Ether (ETH) are not securities.
These records, known as “discovery documents” in legalese, could aid Ripple’s defense against the SEC’s allegations. These records will include memos, transcripts, and other third-party correspondence about Bitcoin and Ether’s security status, according to the judge.
Documents Might Help the Defense
The recent court decision on search records, according to legal analysts, may have tipped the case in Ripple’s favor.
Entry to SEC records, according to Jeremy Hogan of HoganLegal, would help Ripple’s “fair notice” protection. The SEC failed to warn Ripple that its activities were illegal before taking legal action, according to this protection.
In other words, the records could be used to show that the SEC was uncertain about the legal status of XRP for many years, as well as to prove Ripple’s innocence over XRP sales.