Ripple Urged to Revoke SEC’s Litigation Privileges

Ripple’s lawyers urged the court to deprive the US Securities and Exchange Commission (SEC) of its deliberative process privilege (DPP) due to its overly aggressive defenses.

DPP is a principle of law that allows the regulator to refuse to disclose documents or testify, citing the confidentiality of data and sources.

The dispute about the regulator’s use of this principle of law has been going on for several months. On December 3, Justice of the Peace Sarah Netburn ordered the parties to provide additional arguments in support of their positions.

Ripple’s lawyers cite a lawsuit by the Natural Resources Defense Council (NRDC) against the US Environmental Protection Agency (EPA). In this case, the court ruled that government departments were responsible for linking the hidden document to a “specific decision” or “specific decision-making process”.

The SEC must define a specific decision-making process and explain how each hidden document relates to those processes, the lawyers said. Lawyer Matthew Solomon in a letter to the judge said that in this case, the Commission clearly failed to meet this obligation.

The company also stressed that in the current case, the SEC is the plaintiff and not the defendant.

In contrast, the SEC argues that the NRDC case indicates that there is no need to associate hidden records with a “single, discrete solution” to apply for DPP protection.

In addition, the Commission’s lawyers stressed that the precedent under review demonstrates the regulator’s right to apply DPP to “records relating to the agency’s decision on how to communicate its policy to individuals outside it”.

These documents include the SEC’s internal messages about the content of speeches and other public communications.

Earlier, Ripple CEO Brad Garlinghouse said that the US Securities and Exchange Commission (SEC) gave the green light to Ethereum, but continues to harass XRP. In his opinion, this gave Ethereum an edge in the market over XRP.

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