Outside of the crypto market, the SEC v. Ripple case has recently gained traction. Judge Netburn decided this week that the SEC will submit demands for Ripple’s documentation from business associates to foreign governments.
In the newest updates, the question raised at Friday’s hearing was if the SEC could obtain advice papers from Ripple’s attorneys that would aid them in determining if XRP was a security or not.
Ripple has also sent the SEC two attorney letters from 2012 and 2015, according to the SEC’s oral argument in the hearing. The executives were warned in the previous letter that “XRP could be a security.”
The SEC’s lawyer also said that Ripple Labs was speaking with platforms in a “biased” manner by claiming that they were not securities. The SEC, on the other hand, noted that their (Ripple’s) lawyer at the time may have claimed differently. As a result, the SEC requested access to the documents in order to gain a better insight.
In a previous video, famous cryptocurrency lawyer Jermey Hogan expressed his thoughts on the topic, saying,
“The SEC wants to get other lawyer opinion letters because because it wants to be able to say Ripple had fair notice from its own lawyers… But more this litigation goes on, the more important, I think, the fair notice defense is.”
The SEC’s lawyer continued to contend in their answer letter to Ripple that Ripple was trying to claim a good-faith defense and label it a fair notice.
The SEC’s lawyer focused his claim in part on the Scott v. Chipotle ruling, in which Judge Netburn found that defendants had to reveal their legal interactions in order to maintain fair treatment and good faith. Despite this, Hogan believed the situation was shifting in Ripple’s favor. He said.
“What’s relevant to the defense is what a regular, normal market participant would know. A subjective test acts as good as what the defendants know.”
Ripple’s attorneys have confirmed that they had not waived their lawyer-client privilege. As a result, the judge must be the one to waive it, which is extraordinary, particularly throughout pre-litigation reporting.
Another person who was present at the hearing stated,
“I think the communications will be protected under attorney client privilege. The judge in my opinion is requesting time to come to a decision to relive into the several cases used as evidence on both sides.”
Eventually, Hogan said that,
“I don’t think she [Judge Netburn] will follow the SEC down this road. My opinion – Motion denied.”