XRP lawsuit: Ripple execs must ‘thank SEC for suing individually’

“Looks like the SEC is throwing this DPP Hail Mary and hoping Judge Torres clears them on appeal.”

Hasn’t that been the case lately? Nevertheless, Ripple Labs and its executives continue to suppress a possible victory against the regulatory watchdogs. On February 11, Ripple Labs filed a Letter Movement to force the SEC to surrender notes. These notes related to the 2018 meeting between Brad Garlinghouse and former Commissioner Elad L. Roisman

However, as expected, the plaintiffs refused. And in doing so, the SEC claimed that “they were privileged.”

Everything has an expiration date

That was not the end, however.

On February 28, CEO Brad Garlinghouse archived a response to the SEC’s opposition to its motion seeking the disclosure of the notes (the “Estabrook Notes”).

The SEC mentioned privilege, but the defendants think otherwise, because according to the court ruling of January 13, 2022, the Estabrook Notes are not privileged and must be disclosed. In fact, the SEC’s opposition was spent equating the Estabrook notes with the notes taken at a 2019 meeting involving a third party.

To many, the SEC seemed to be ignoring the main reasons cited by the director. According to the doc in question, Garlinghouse is requesting disclosure of the Estabrook notes since,

“(…) they are likely to corroborate his account of a discussion he had with an SEC commissioner about digital asset regulation, an issue that goes to the heart of the SEC’s “knowledge or recklessness” allegations against it.”

The SEC’s argument is that it has no evidence of disclosure of the Estabrook Notes. In fact, it stated that this would affect the Commission’s policy-making process, to add,

“…that one purpose of the notes was to enable Mr Estabrook to “provide advice to Commissioner Roisman on a possible future Commission proposal of a rule relating to the regulation of the supply of digital assets.”

The director believes the SEC’s attempt to defend its sword-and-shield tactics is inconclusive. In addition, Garlinghouse asked the judge to deny the watchdogs “engaged in such tactics”.

If the judge grants this motion in favor of the defendant, it would indicate a possible victory for Ripple. John Deathon, founder of CryptoLaw, shared the same optimism as much as.

Jeremy Hogan quickly chimed in as well, with the attorney sharing a few possible scenarios in an effort to critique the SEC’s next moves.

Strangely enough, according to John Deaton

“Thank Jay Clayton for suing them and creating a higher burden of proof on the SEC. By suing them individually, the SEC has made these notes much more relevant and potentially necessary.”

There is always an ‘IF’

As was the case in previous litigation over the SEC’s documents, the plaintiff declined to submit them over claims of deliberative process privilege.

Would this repeat itself? Well, even if this happened, maybe Garlinghouse would just win.

Leave a Comment