XRP Lawsuit: Ripple Scores Biggest Win As Judge Denies SEC’s Motion For Reconsideration

April 12, 2022 10:31 pm Comments

Judge Sarah Netburn has finally denied the SEC’s motion for reconsideration of the DPP ruling as part of the court’s latest order in the Ripple vs SEC lawsuit.

This decision was regarded as one of the biggest turning points within the lawsuit by both John Deaton and the Ripple team as it would affect the outcome of the XRP lawsuit and the crypto industry as a whole.

With this win, the SEC may be forced to settle if they refuse to hand over internal SEC documents to the court to be reviewed for the case.

The recent ruling also has a section that may be used to prevent any additional appeals which may bring the case to a close sooner than expected.

As of right now, the SEC has been given 14 days to file an objection to the decision to Judge Torres.

FinanceFeeds reports:

Judge Netburn explained that she ordered the production of certain SEC documents – after concluding they were not protected by DPP – in order to allow the defendants to challenge the SEC’s allegations that Larsen and Garlinghouse were objectively reckless in believing that XRP was not a security and that Ripple was on “fair notice” that XRP was a security.

The court added that reconsideration of a previous order is an “extraordinary remedy to be employed sparingly in the interests of finality and conservation of scarce judicial resources.

In an attempt to claim privilege, the SEC said the court overlooked that Bill Hinman made his 2018 speech on BTC and ETH in order to communicate the approach of the SEC’s Division of Corporation Finance, and that the speech was the end-product of “significant collaboration” by many staffers across the SEC, as evidenced by the 68 drafts and associated commentary in the SEC’s privilege logs. Such deliberations should be protected by DPP, the plaintiff claimed.

Essentially, the court has decided that the SEC statements indicate that it is trying to “have it both ways” which has resulted in the SEC contradicting its own position.

Hinman’s speech cannot both represent his own personal views and the agency’s policy at the same time.

Therefore, it must be one or the other to maintain consistency and its content is not protected by the privilege.

Ultimately, the delay tactics that the SEC used to the past may finally be coming to an end which Ripple has complained many times about thus far.

FinanceFeeds reports:

“She called out the SEC for its inconsistent positions related to the speech. She said you don’t get to change your position just b/c you didn’t like the Court’s conclusion.

She highlighted the inconsistency by drawing specific attention to Hinman’s “under oath” testimony”, he continued.

“Any appellate court will see that the judge is honoring all privileges under the law. There is no way, IMO, Judge Torres or the 2nd Circuit disturbs Judge Netburn’s ruling.”

If this analysis holds true and the SEC is unable to obtain an appeal for the DPP ruling, the SEC v. Ripple lawsuit could end faster than expected, which would result in the relisting of XRP in the US-based exchanges and trading platforms.

It seems as if time is running out for the SEC and the committee will be forced to make a hard decision soon.

The possible outcomes is either the SEC decides to settle the case or the SEC decides to reveal the internal document which means Ripple is successful in maintaining its defense against the SEC in both scenarios.

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