In the middle of a court battle with the Securities and Exchange Commission, Ripple defendants have responded with a demand to uncover SEC employees’ XRP holdings, which they claim is an unregistered security.
On August 27th, Ripple’s attorney, James Filan, unveiled a fresh motion seeking that the SEC reveal data connected to its own employees’ XRP holdings. The legal order follows four earlier meetings Ripple had with the SEC about this issue during the summer, all of which were without progress.
Ripple Labs Inc., Bradley Garlinghouse (Ripple CEO), and Christian A. Larsen have filed the motion (Ripple executive chairman). The defendants specifically want to collect “anonymized documents indicating [the SEC’s] trading preclearance determinations with regard to XRP, bitcoin, and ether.”
They also want information on employees’ XRP holdings, either with redacted personal information or in aggregate form.
Ripple demonstrates in its motion that the SEC had “not adopted or imposed” any rules prohibiting their employees from dealing in cryptocurrency prior to January 16th, 2018. This would be consistent with the commission’s earlier views on digital assets not being securities up to that point, according to the business. Nonetheless, this provided SEC staff with a wide window of opportunity to acquire XRP.
The recent news is simply the latest chapter in Ripple’s ongoing legal battle with the SEC, which Ripple has been winning recently. In May, a US court dismissed the SEC’s request to examine Ripple’s internal correspondence about the sale of their coin, putting a halt to the commission’s efforts to crack down on them.
Furthermore, Ripple was recently granted access to information about the company’s XRP sales on the Binance exchange, which the company’s legal team believes were “overwhelmingly made on digital asset trading platforms outside of the United States.” The SEC’s case against Ripple under the Securities Act, which only pertains to domestic offers and sales, suffers as a result.