The court allowed Ripple to access internal US Securities and Exchange Commission (SEC) documents that describe how a cryptocurrency asset is recognized as a security. Thus, the company expects to find grounds for including XRP in the same category as Bitcoin and Ether, which the SEC does not consider as securities. XRP, according to the regulator, is a security that Ripple was selling illegally.
Ripple will be able to read protocols and memoranda “expressing the interpretation or views of the agency” on cryptocurrencies. Judge Sarah Netburn on Tuesday suggested that such documents are likely to be found, and “largely” granted Ripple’s petition.
Ripple’s lawyers argue that the SEC could be “game over” if it turns out that the regulator internally called XRP a currency. At the same time, the SEC is not required to disclose the details of the correspondence between its employees.
The SEC filed a lawsuit against Ripple in December, accusing the company of illegally selling more than $ 1.3 billion in securities since August 2013. Ripple’s defense is based on the fact that XRP is similar in its characteristics to bitcoin and ether, and therefore is not a security and does not fall under the jurisdiction of the SEC. Since the alleged illegal sale has been going on for eight years, Ripple hopes that it can find documents during this time that would justify its actions.
Lawyer Jeremy Hogan, in connection with the latest events, recalled the SEC’s order to immediately stop illegal activities against Ripple Labs from 2016, in which it is called a company from the field of digital currencies.
“Now the SEC will have to explain to the court how the ‘digital currency’ became a ‘digital security’,” he adds.
The XRP rate in recent days has risen by 80% and exceeded $ 1, which allowed it to again take its place in the top 4 of the cryptocurrency market.
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