Ripple has taken an aggressive approach to settle its ongoing lawsuit with the SEC. The former has submitted two consecutive proposals to put the US regulatory board in the back seat. On February 23, the United States Securities and Exchange Commission (SEC) filed a ‘Sur-Sur-Reply’ to Ripple Inc.’s 10 February sur-reply on the “fair notice” defense.
Why SEC’s motion against Ripple’s ‘fair notice’ defense was turned down
Unfortunately, District Judge Analisa Torres rejected the SEC’s motion. Ripple Labs, on February 11, filed a Letter of Motion to compel the SEC to file the notes. This relates to a 2018 meeting between Brad Garlinghouse and former Commissioner Elad L. Roisman. Plaintiff here, the SEC refused.
The SEC filed an objection to Brad Garlinghouse’s motion to force the sale of notes made by Matthew Established, an adviser to then-SEC Commissioner Roisman, about the 2018 meeting between Roisman and Garlinghouse. The case filed on February 24 contains the most recent one sent to Judge Sarah Netburn.
James K Filan, a prominent attorney, added that Plaintiff submitted the notes to Judge Netburn of the Magistrates Court for review on the camera.
“The Notes are pre-decisional and deliberative, and piercing the SEC’s privilege is unwarranted because Garlinghouse’s need for the [notes] is significantly reduced given his presence at the meeting,” SEC stated.
Moving on, several factors weighed against the disclosure of the said notes. There were (i) the relevance of the evidence sought to be protected (ii) the availability of other evidence (iii) the ‘seriousness’ of the litigation and the issues involved (iv) the role of the government in the litigation (v) the possibility of future timidity by government employees who will be forced to recognize that their secrets are violable.
This is indeed the reaction stirred up on Crypto Twitter following this news. For example, one Twitter user with more than 240,000 subscribers, an investor in digital processing, suggested that the SEC filed this case as a weapon only to delay the eventual predicament.
The SEC vs @bgarlinghouse @chrislarsensf @Ripple cases were Dead On Arrival 134k views and counting because the people now know the SEC filed this case as a weapon knowing they couldn’t win. When did this agency stop working for the people???? @tedcruz @PatrickMcHenry @SenToomey https://t.co/sd7lSlOWJP
— Digital Asset Investor (@digitalassetbuy) February 25, 2022
Others were more annoyed with these “irrelevant” updates from the regulator. However, this is not the first time the SEC has played its cards to delay registration.
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