Federal judge picks Ripple and denies SEC access to legal communication

A federal judge denied the U.S. Securities and Exchange Commission (SEC) access to Ripple's communications with lawyers. The SEC has asked the San Francisco-based company to provide any legal advice it receives as to whether its XRP offerings/sales violate securities laws. The SEC says Ripple is advocating for an "ingenious" "good faith defense," meaning the case will focus on whether the company believes its actions are legitimate. Such a defense waives attorney-client privilege over any communication that could shed light on whether or not Ripple truly believes that it is following the law. However, Ripple's lawyers say the company's legal arguments in the lawsuit revolve around the SEC's "lack of clarity and fair disclosure" regarding the company's legal obligations. Judge Sarah Netburn said, “Ripple claims that the actions and inaction of the SEC did not inform market participants that the agency considers XRP a security. In support, he cites the SEC's eight-year delay in pursuing enforcement action against Ripple for alleged securities breaches – even after XRP was listed on more than 200 cryptocurrency exchanges, billions of dollars worth of XRP were sold and Ripple reached a settlement. . The US Department of Justice and FinCEN have described XRP as a "convertible virtual currency". Netburn continues to argue that such an argument is actually about the SEC's mood, not Ripple's, meaning that the payments company has not waived its attorney-client privilege. “Ripple is instead focusing on the failure of the SEC. Honestly informing the market about the Commission's mood regarding whether XRP qualifies as a security It is not clear that such a defense even requires a defendant to act in good faith… I arrived at a limited question about whether or not

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