In the ongoing legal battle between Ripple and the SEC, there has definitely been a lot of back and forth, with the court’s favor often swinging in either direction of the defendant or accuser. The SEC had claimed that Ripple’s XRP token had exhibited security-like functions, as well as insinuate that CEO Brad Garlinghouse was deriving profit from the unregistered sales of various XRP tokens. Since then, there have been plenty of developments, with the more recent ones revolving around the SEC wanting to obtain sensitive data from Ripple through the use of foreign 3rd party individuals and regulators.
Now though, it would appear as if the court has once again and perhaps decisively sided with Ripple as it rejected the SEC’s proposal to have the aforementioned regulators become involved, thus culminating in a critical win for Ripple.
Netburn sides with Ripple
Ripple may be understood as a tech provider specializing in distributed ledgers, and its native XRP token has been one of the more successful tokens for a while now, having firmly secured a place in the top 10 cryptocurrencies by market cap on a near consistent basis. As of the time of this writing, XRP is trading at a price of $0.9, which is a 3.8% increase since yesterday.
Ripple has now managed to score another critical victory against the commission, when Sarah Netburn, the judge presiding over the entire case, had revealed that the SEC’s motion for gaining access to and subsequently obtaining any kind of legal advice that Ripple may have received or sought about the XRP token’s regulatory status has now been firmly denied.
In doing so, the judge’s action has actually improved Ripple’s defense pertaining to the ‘fair notice’ which had been built on the idea that the SEC did not provide any kind of adequate warning to the company as well as the relevant participants in the market to prepare for such an accusation and development regarding a potential ‘unregistered security’ status.
Is Ripple’s defense cognizable?
Despite her recent decision, Judge Netburn has reminded everyone that she has not taken any kind of position regarding Ripple’s defense status and whether it is indeed cognizable as well as meritorious. As such, the court has denied any rumors or allegations regarding the adoption of a position about the aforementioned Ripple defense.
Ultimately, time will only tell whether this is the final blow dealt with the SEC or if the commission has something else in store for Ripple.