Lawsuit Swings in Ripple’s Favor as Judge Denies the SEC’s Attorney-Client Privilege Claims

The legal battle between the SEC and Ripple Labs has taken another turn.

The legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs has taken another turn, as the judge in charge of the case, Magistrate Judge Sarah Netburn, denied the SEC’s plea for attorney-client privileged.

SEC’s Claim to Attorney-Client Privilege Denied

Last week, we reported that the SEC had filed an omnibus motion to exclude (or limit) expert testimony from the Hinman documents. The Ripple team acknowledged the motion, filing their own counter-motion in response. 

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On Tuesday, July 12th, Judge Sarah Netburn denied the motion to exclude the testimony. The document which the SEC attempted to hide contains a speech in which former SEC chief Bill Hinman suggested that Ether (ETH) was not a security. 

SEC Called out for Its Hypocrisy

In addition to denying the motion, Judge Sarah Netburn called out the SEC’s hypocrisy in trying to hide the Hinman documents. An excerpt from the ruling reads:

"The hypocrisy in arguing to the Court, on the one hand, that the Speech is not relevant to the market's understanding of how or whether the SEC will regulate cryptocurrency, and on the other hand, that Hinman sought and obtained legal advice from SEC counsel in drafting his Speech suggests that the SEC is adopting its litigation positions to further its desired goal, and not out of a faithful allegiance to the law."

The ruling comes just hours after Ripple Labs hit out at the SEC for its antithetical move of attempting “to shield the identities and opinions of its experts from any public scrutiny.”

Ripple’s legal team also claims that the SEC’s plea was an abuse of the Protective Order in a flagrant attempt to prevent criticism of its experts from becoming public.

On the Flipside

  • Crypto legal expert Jeremy Hogan remarks that the turn is a unique case due to the fact that it is the prosecutors who are trying to obscure information, rather than the defendants.

Why You Should Care

The Hinman document, which the SEC has attempted to keep under wraps, is being viewed as potentially pivotal evidence that could swing the lawsuit in Ripple’s favor.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia