Investing.com – Ripple’s native cryptocurrency hardly moved on Saturday morning, despite the fact that the US Securities and Exchange Commission (SEC) won a small victory in its legal battle with the payment network.
The SEC gains access to Ripple’s internal Slack and email communications.
Ripple was asked to release internal documents as part of its ongoing legal dispute with the US Securities and Exchange Commission, according to news site Law360 recently.
According to this, the company has to make the conversations of its employees from Slack (NYSE 🙂 and 22 different e-mail inboxes available to the US Securities and Exchange Commission.
Ripple has already made some documents available to the SEC, but in August the payment network refused to give out additional Slack communications and other means of communication. This would “likely take months and significant costs,” the company said. According to reports, gathering these documents could cost Ripple up to $ 1 million.
The US judge Sarah Netburn, who presides over the case, said that these costs are due to both [Ripples] prior consent to show the relevant Slack messages as well as will be more than outweighed by the amount of funds available and the amount at stake in such event.
It is unclear whether Ripple will challenge the release of the communication protocols a second time, or whether this is even possible.
Ripple recently filed a motion in court asking the SEC to disclose the XRP holdings held by its employees. The reason is the ongoing legal battle over whether Ripple should be classified as a security or not. If the assertion that SEC employees privately traded XRP in the course of their work is proven to be true, there would be a massive conflict of interest. This could tip the case in Ripple’s favor.
In December 2020, the SEC filed a lawsuit against Ripple for offering US investors XRP tokens, which allegedly were unregistered securities. In their defense, Ripple argues that XRP is not a security, just a currency.
It is unclear when a final judgment will come about. The disclosure period originally set for August 31st has been extended to November 12th. According to most experts, the case is likely to drag on until 2022.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.