In yet another win for Ripple in its lawsuit against the SEC, the Judge has denied the Commission’s motion to compel the payment processor to produce internal information discussing XRP sales with its legal team. As a result, the price of the XPR token surged by double-digits in 24 hours.
SEC Denied From Accessing Internal XRP Sale Docs
Earlier in May, the Securities and Exchange Commission asked the Court to order Ripple to produce all relevant documents of legal, internal communication that the agency believed would determine whether the company’s XRP sales were compliant with federal securities law.
However, US Magistrate Judge Sarah Netburn has sided with the blockchain-based payment processor. According to the verdict from this weekend, the Judge ruled against the SEC’s motion.
By referring to the attorney-client privilege, which Ripple has used for its defense, Judge Netburn said it’s meant to “encourage full and frank communication between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice.”
Although this privilege can be waived on certain occasions, the Judge said this is not the case with the legal battle between Ripple and the SEC.
“Accordingly, the SEC’s motion is denied. If, at some later date, Ripple raises its good faith beliefs or relies upon its privileged communications in support of its fair notice defense, the plaintiff may renew its application to the Court.” – reads the verdict.
Attorney Jeremy Hogan described the Court’s decision as “very important” because it has ultimately blocked the road the SEC wanted to use.
Judge DENIES the SEC’s motion to compel production of Ripple’s lawyer opinion letters. Very important because the Judge states Ripple’s subjective beliefs re XRP are NOT relevant to the Fair Notice defense, blocking the road the SEC wanted to use to fight the Defense. https://t.co/MHsx569BmO
— Jeremy Hogan (@attorneyjeremy1) May 30, 2021
XRP Reacts With a Sudden Price Surge
The price of XRP, which suffered severely upon the initial SEC charges, has reacted immediately after the latest developments. Following the previous two wins for Ripple, the native token surged sharply, and something similar transpired in the past 24 hours.
XRP traded below $0,9 before it spiked by a double-digit percentage. As a result, it went to a four-day high above $1.
According to CoinMarketCap, XRP, with its market capitalization of over $46 billion, surpassed Dogecoin as the sixth-largest digital asset.