Judge Allows SEC to Request Ripple Information From Foreign Regulators

Magistrate Judge Sara Netburn has allowed the U.S. Securities and Exchange Commission (SEC) to request information about Ripple under a memorandum of understanding (MoU) with foreign regulators.

According to Ripple’s lawyers, the SEC is trying to intimidate overseas partners and force them to sever ties with the company. In April 2021, the lawyers asked the court to halt this practice.

#XRPCommunity #XRP #SEC v. #Ripple @sentosumosaba BREAKING: DISCOVERY DISPUTE REGARDING #SEC CONTACTING FOREIGN REGULATORS AND SEEKING DISCOVERY OUTSIDE RULES OF FEDERAL PROCEDURE AND HAGUE CONVENTION. LETTER MOTION ATTACHED.https://t.co/53ytaZCjTi

— James K. Filan (@FilanLaw) April 16, 2021

Ripple contends that the agency should act in accordance with the Hague Convention. It is a slower and less efficient process than the MoU.

Netburn denied Ripple’s request. In her view, the defendants did not prove that such requests go beyond the scope of any bilateral agreement.

“On the contrary, courts regularly reject the claim that the Hague Convention is an exclusive or priority means of conducting foreign investigations,” she added.

Under the order, the SEC must produce all documents obtained in response to the requests. The agency is also ordered to provide copies of previous submissions within 14 days and to report on such actions in the future.

Earlier the SEC reached out to nine foreign regulators with a request for disclosure of information from 14 trading venues and five companies. Two agencies declined to assist the U.S. authorities, three prohibited disclosing the details of the discussions. The others rejected the request.

unregistered sale of securities disguised as XRP tokens worth $1.3 billion. Later the agency amended the complaint, focusing on the actions of Brad Garlinghouse and Chris Larsen.

In December 2020 the SEC charged Ripple and its top executives with the unregistered sale of securities disguised as XRP tokens worth $1.3 billion. Later the agency amended the complaint, focusing on the actions of Brad Garlinghouse and Chris Larsen.

In April 2021, the court granted Ripple’s motion, ordering the regulator to provide access to documents revealing the SEC’s “interpretation and views” regarding Bitcoin and Ethereum.

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