Things really seem to be going the way of Ripple in the still ongoing legal battle with the SEC. Ripple has seemingly outsmarted the SEC once more thanks to the highlighting of the apparent nonsensical nature regarding the lawsuit itself.
The lawsuit had witnessed the defendants go ahead and file a motion through which the SEC was compelled to present documentation pertaining to the agency’s ‘trading pre-clearance decisions’ regarding ETH, BTC, and of course, XRP. In addition, any documents related to the XRP holdings of the agency’s employees were also to be produced.
Ripple wants SEC’s documents
This is not the first time that Ripple has asked for such documents to be presented by the SEC, as there were four other occasions where this had occurred but with little to no success. As to why Ripple would want this information, the reasoning given is that the SEC’s trading policies regarding the trading of ‘governing digital assets’ must be completely understood in as much detail as possible, and so it is also vital to know as to whether the agency had enabled its own employees to actively trade with XRP.
Earlier on in June, Ripple had gained a victory when the court ruled in its favor through which the SEC had to present the documents. To that end, the SEC had then provided a policy from January of 2018, which was basically just an ethics-based guide pertaining to digital assets. According to this policy, until January of 2018, the agency had not, in fact, limited its employees from being able to trade in various cryptocurrencies. It is this singular fact that Ripple claims are in line with the perspective that the regulator did not view digital assets as securities, generally speaking.
An unexpected blow to the SEC
Keeping the aforementioned information in mind, it was during December of last year (which was around the time when the lawsuit had been initiated) that the SEC accused Ripple of illegally selling unregistered securities worth $1.3 billion since 2013. Ripple, on the other hand, claims that the abovementioned policy calls the whole premise of the agency’s lawsuit into question, as the SEC admitted to not preventing its own employees from trading with XRP.
Ripple added that the only natural conclusion in light of this new evidence would be that the SEC did not have a conclusive opinion regarding XRP and its status as a security. Hence, the accusations that the SEC has thrown towards Ripple are highly inconsistent at best. At worst, it would be fair to assume that this was a devious attack on the crypto industry itself via the lawsuit against Ripple.
No matter what the SEC may have previously thought, it is clear that the agency vastly underestimated Ripple and the crypto community.