The US Securities and Exchange Commission requires the disclosure of more than 1 million internal Slack messages in the ongoing legal process against Ripple (XRP). These would be needed to back up the charges.
There is still no end in sight to the US stock exchange supervisory process against Ripple because of XRP. After Ripple could recently win stage wins, the SEC is now going on the offensive again. In an urgent submission to the court, the SEC demands that Ripple be obliged to transmit more than 1 million data records from internal communications via the Slack messenger service. Contrary to claims by Ripple, only part of this communication has so far been delivered to the SEC. There is a strong suspicion that information withheld by Ripple contains details that could support the SEC’s indictment.
Legal process observers in the US interpreted the SEC’s move as logical. Jeremy Hogan, for example, commented on Twitter, This strategy could provide evidence of how Ripple discussed the issue of XRP internally. In essence, the procedure is about whether XRP is similar to a security and therefore Ripple needed an approval from the SEC for the sale of such “securities”. The SEC is now also arguing that the non-admission of its designated witnesses was due to incomplete Slack messages.
In the meantime, however, the events in the SEC and Ripple conflict seem to be overturning. Because according to Hogan and James K. Kilian, another legal observer, the judge has meanwhile made two decisions. First, the SEC’s motion was approved. On the other hand – and that may have even more explosives – the litigants should quickly submit a written and short statement on where they stand and how procedural privileges should be dealt with. This sounds as if the court is running out of patience with repeated requests for evidence.
Conclusion: the SEC against Ripple process is developing its own momentum
XRP is not doing the ongoing legal battle any good and Ripple therefore has an interest in bringing about a judgment or finding an out-of-court settlement as soon as possible. The SEC, meanwhile, has apparently struggled to find sufficient evidence to support its charges against Ripple and XRP. With this intermediate result in the drama, there are some indications that the court is now putting pressure on the pace. Deadlines are set briefly and a first hearing, perhaps in August, seems possible. What will emerge from this dynamic remains open, however.
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