U.S. Judge Sarah Netburn has denied access to Ripple Labs’ legal communications to the Securities and Exchange Commission (SEC).
In a recent memorandum from the US District Court The memo states that Judge Netburn has denied access to the SEC’s Ripple Labs communications records.
The document states that the SEC has sought an access order. “All communications that constitute, transmit or discuss any legal advice that Ripple seeks or receives whether the offer and sale of XRP is or will be governed by federal securities laws.”
The memo ends with “Movement rejected”;
The ruling comes less than a month after the SEC filed a petition against Ripple. Ripple Labs previously added former U.S. Treasurer Rosie Rios to its board of directors. Meanwhile, Fintech Chief Executive Kristina Campbell was added to the team as Chief Financial Officer.
Issues raised against the verdict
In the memo, Judge Netburn added several reasons for rejecting the SEC, including attorney-client privileges. “Strictly restricted to the narrowest possible extent consistent with the logic of the Principles.”
Another point raised by the SEC’s request is the rights of attorneys’ clients. The memo reiterates that “The parties do not argue that the information the SEC is seeking is under privileges.”
Additionally, Ripple Labs claims that the protection “Fair notice” is “a lack of clarity and fair notification of the defendants’ obligations under the law.”
Ripple Labs also stated that an eight-year delay in its enforcement action against the company. Based on more than 200 exchanges and billions of dollars worth of XRP sales transactions. which is another issue of concern
Finally, Ripple Labs also explains that some exchanges have previously sought advice on XRP being considered a security prior to listing.
The SEC did not specify that it considered XRP a security and said the exchange identifies the cryptocurrency.
Ripple wins the SEC . Again
The memo continues with several points of support for Ripple Labs. “The SEC’s move was rejected.”
The SEC’s latest blow is yet another victory for Ripple Labs, which has been battling the SEC for months.