The Securities and Exchange Commission stated in a recent letter to Magistrate Judge Sarah Netburn that its internal papers are no longer relevant because Ripple leaders, CEO Brad Garlinghouse and co-founder Chris Larsen, failed to dismiss the action.
The letter is intended to support the SEC’s current move for partial reconsideration and clarification of the court’s January 13 judgment.
Ripple won a procedural victory by persuading the court that the agency’s emails pertaining to former top SEC official William Hinman’s important Ethereum speech were not shielded because they were essentially his personal views.
The regulator, SEC, on the other hand, is fighting to keep these emails hidden.
The defendants claimed that the plaintiff requested a “do-over” because it was dissatisfied with the earlier decision. Ripple maintains that Hinman’s speech is “very significant” to the discovery process. Obtaining the emails could make it easier for the defendants to refute the agency’s claims about the XRP cryptocurrency’s regulatory status.
However, the SEC now claims that by denying the executives’ move to dismiss the complaint last week, Federal Judge Analisa Torres effectively resolved the disagreement in the agency’s favor. The court rejected the suggested “scienter test,” ruling that the plaintiff did not have to prove that the individual defendants knew or willfully disregarded that their XRP transactions violated securities laws.
As a result, the SEC maintains that the court should not order it to turn over its internal documents, regardless of whether they are protected by the deliberative process privilege (DPP).
Hinman said he alerted Ripple about the nature of the XRP cryptocurrency during his testimony in late July.
In other events, the SEC has asked for an extension of time to respond to Ripple’s motion to strike the agency’s rebuttal report.
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