Ripple Suffers Major Blow after Court Denies Access to Crypto Transactions of SEC Employees
Ripple case with the US Securities and Exchange Commission has been one of the most interesting cases in the crypto community this year. The recent development, in this case, has been a blow to Ripple, as a federal judge has denied the company access to the crypto trading records of SEC employees.
According to XRP, getting access to these records would help prove that the commission did not consider XRP as a security as it claimed since some of its employees held XRP in their portfolios.
A Win for the SEC
The case documents show that Ripple filed the motion to gain access to these documents on August 27. According to XRP, if the records led to a discovery that some SEC employees held XRP in their portfolio, it would show that the commission lacked a clear framework that distinguishes between a security and a cryptocurrency.
Ripple also adds that proving SEC employees held XRP would undermine the SEC’ case. However, the federal judge, Sarah Netburn, failed to grant Ripple’s motions for several reasons.
The judge stated that she had upheld the SEC’s argument that “the preclearance decision process does not involve any determination by SEC Ethics Counsel that a trade complies with the securities laws.” She also stated that the SEC lacked a trading policy regarding cryptocurrencies when the case was filed; hence its employees did not violate any policy.
The judge also stated there was no legal cause to grant Ripple’s demands. She further added that the SEC’s employees were protected under the federal privacy statutes and regulations, which prohibited the disclosure of specific financial information.
The SEC had filed a motion to compel Ripple to access its internal communications. However, XRP argued that producing these records would be a hectic process. Despite this argument, the court ruled in the SEC’s favour.
XRP’s price action is usually affected by the developments of this case. Whenever XRP wins a motion, the value of XRP rises, and when it loses, the values drop. However, this time, the price of XRP has remained unchanged.
XRP is currently trading at $0.94, according to data from Coingecko. This is a 0.2% dip in the past 24 hours. However, the dip is not attributed to the loss suffered by Ripple in the case, but due to a recession across the broader cryptocurrency, where bitcoin has dropped to $42K.
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