The newest step in the SEC case against Ripple occurred after the regulator objected to it after the Ripple firm requested that SEC employees divulge their XRP holdings. According to the declarations, the SEC requested that the court reject the defendant’s promise to support the staff’s privacy.
Experts believe Ripple’s (XRP) assertion is completely irrational
Ripple filed a lawsuit in court on August 27, to force the SEC to reveal information on workers’ XRP holdings and Bitcoin and Ethereum transactions.
For its part, blockchain firm Ethereum has asked the SEC to provide this information in an anonymous or aggregated form. To counter Ripple’s September 3rd motion, the SEC said that it would be an undue interference if Ripple’s workers were forced to provide their trading information. According to Pascale Guerrier, a trial attorney in the SEC’s Enforcement Division,The SEC Ethics Counsel Office (“Ethics Counsel”) collects sensitive data in order to verify that SEC personnel adhere to ethical guidelines in order to avoid any conflicts of interest. Non-determination of compliance with securities legislation.
In essence, the paper states unequivocally that pre-approval by the Ethics Counsel does not indicate whether a transaction complies with securities regulations. As a result, their ruling will be irrelevant to the case. It is essential to note that the Ethics Advisor has certified that XRP, Bitcoin, and ETH are not on the list of “Prohibited Holdings.” However, XRP is at the top of their “Watch List.”
The SEC also stated that it wants the court to reject Ripple’s request for additional grounds. While the blockchain business seeks anonymized records, the SEC claims that even aggregated data has an impact on workers’ faith in the Ethics Counsel. Furthermore, the SEC has decided that the Ethics Counsel’s information gathering is taxable, as he may be compelled to provide paperwork for up to nine years. The regulating agency’s remarks were as follows:
Filan, James K.
The enormous weight of SEC workers’ privacy concerns outweighs any benefits of disclosure.
The SEC’s issue is that it is incorrect regarding facts and legislation. Nonetheless, nothing I’ve seen alters my view about the casing being dragged to different sizes.
In a recent tweet, defense attorney and former federal prosecutor James K. Filan provided images of the SEC counter-reaction papers (above). A Twitter user asked, “What is the biggest risk to the SEC, James?” Is there anything that might prompt them to go too far with backroom discussions? James K. Filan responded to his inquiry by saying:
Meanwhile, at the time of writing, XRP was trading at $1.27, up more than 10% for the week.
