In the middle of a court battle with the Securities and Exchange Commission, Ripple defendants have responded with a petition to reveal SEC employees’ XRP holdings, which they claim is an unregistered security.
Attorney James Filan announced Ripple’s second motion on August 27th, demanding that the SEC reveal documents connected to its own employees’ XRP holdings. The legal order comes after Ripple had four earlier meetings with the SEC over the summer regarding this issue, all of which were “without progress.”
Ripple Labs Inc., Bradley Garlinghouse (Ripple CEO), and Christian A. Larsen have filed the motion (Ripple executive chairman). The defendants want to collect “anonymized documents reflecting [the SEC’s] trading preclearance determinations with regard to XRP, bitcoin, and ether,” according to the complaint.
They also want information about employees’ XRP holdings to be supplied with personal information redacted or in aggregate form.
Ripple demonstrates in its motion that until January 16th, 2018, the SEC had “not enacted or imposed” any rules prohibiting their employees from dealing in bitcoin. According to the firm, this would be consistent with the commission’s earlier opinions on digital assets not being securities. Nonetheless, this provided SEC personnel with a large window of opportunity to collect XRP.
“From 2013 until at least January 19, 2018, SEC personnel were allowed to buy, trade, and hold XRP without restriction,” according to the report.
Ripple and the court aren’t wasting any time: the SEC has until September 3rd to respond to their motion, according to the order.
Ripple’s Legal Battle is Still Going On
The recent news is only the latest development in a long-running legal battle between Ripple and the Securities and Exchange Commission (SEC), which Ripple has been winning of late. The SEC’s attempt to gain access to Ripple’s internal communications about the sale of their coin was blocked by a US judge in May, thus thwarting the commission’s efforts to crack down on them.
Furthermore, Ripple’s legal team recently received approval on a motion to gain access to information about the company’s XRP sales on the Binance exchange, which were “overwhelmingly made on digital asset trading platforms outside of the United States,” according to Ripple’s legal team. The SEC’s case against Ripple under the Securities Act, which only pertains to domestic offers and sales, suffers as a result of this.