In the process of the U-Securities and Exchange Commission against Ripple (XRP) there is a new request for evidence. Ripple wants to know if and how the SEC has banned its officials from trading in XRP, Bitcoin and Ethereum.
The crypto industry is still watching the lawsuit that the US Securities and Exchange Commission is conducting against Ripple over XRP. A telephone hearing is scheduled for today, Tuesday, as trial observer James K. Filan sent Twitter makes public. It should also be about applications from Ripple, which insist that the SEC provides extensive information on how internal decisions on cryptocurrencies have been made in the authority. Ripple’s defense has picked out a new detail, according to a statement to the court. Because Ripple wants to know if and when there were requirements from the SEC for their officials on how to handle XRP privately, but also Bitcoin (BTC) and Ethereum (ETH).
The aim of this question is that SEC employees are not normally allowed to trade in securities because they are overseeing this sector. Conversely, Ripple believes that if the officials were not expressly prohibited from trading XRP, the SEC must have been of the opinion that XRP should not be classified as securities. In the ongoing process, however, the SEC accuses Ripple of having sold XRP against better knowledge without authorization and concealing that XRP is indeed a question of securities. Ripple rejects this and therefore probably wants to know more about the internal rules at the SEC on Bitcoin and Ethereum. At least with Ethereum, there was a clear message from the SEC in 2018 that ETH would not be considered a security.
SEC is also increasing pressure in the XRP proceedings
In his motion, Ripple almost gleefully points out that in several meetings in preparation for the hearing on the subject of the SEC, he inquired about internal rules on cryptocurrencies without receiving an answer. Therefore, the formal route will now be taken. At the same time, the SEC is also pushing another motion, which demands that Ripple make video and audio recordings of internal XRP meetings available. This could show how Ripple discussed the issue of whether XRP should be approved as securities.
It recently emerged that the judge responsible wants to accelerate the process and is working towards a deadline for further requests for evidence. Independent observers have the impression: Both sides (SEC and Ripple) still have blank spots on documents that they should bring into the process. Accusations of “process obstruction” and “procrastination” have already been made because of this. Experts believe that a verdict in 2021 can no longer be expected due to the tactics.
Conclusion: SEC vx. Ripple – explosive process
In an analysis, we worked out why the XRP case is not just about Ripple. The SEC sees its prestige in jeopardy and Ripple wants to protect executives as well as avoid possible compensation payments of more than 1 billion US dollars. But the crypto industry also hopes that the precedent will give clues as to whether the SEC is planning to use more Altcoins in order to subsequently require authorization and thus also to specify the rules for the launch of new cryptocurrencies.
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