Ripple Seeks Clarity on SEC Employees’ XRP Holdings

Divya  |  Aug 31, 2021

Digital payments network Ripple has filed a motion seeking clarity on the US Security and Exchange Commission’s internal policy on crypto ownership and trading. James Filan, an attorney following the Ripple vs SEC lawsuit shared the motion document which demanded the securities regulator to reveal whether its employees were permitted to trade XRP and other digital assets.

Ripple Files Motion to Uncover SEC Employees’ XRP and Other Crypto Holdings

On Friday, Ripple Labs, Ripple CEO Brad Garlinghouse, and Ripple executive chairman Chris Larsen filed a motion in the U.S. District Court for the Southern District of New York to compel the SEC to disclose data on its internal crypto trading policies.

The motion intends to throw light on SEC’s “trading preclearance decisions” for XRP and other cryptocurrencies like Bitcoin and Ether.

“Defendants also seek certifications concerning SEC employees’ XRP holdings — again, either with redactions of personal information or in aggregate form.”

Ripple highlighted that its previous efforts at acquiring data from the SEC have made no progress until now. The company had pursued the regulator on this matter on July 8, July 15, August 18, and August 25 but failed to retrieve the needed information.

In a tweet shared on August 27, Filan wrote that the court has given SEC until September 3 to respond to Ripple’s motion. He added that it was a “text-only order (docket order)”, which means that no separate written order was filed. 

Ripple vs SEC Saga Takes Interesting Turn

The latest development in Ripple and SEC’s bitter legal battle comes ahead of a highly anticipated telephonic conference to discuss the pending privilege dispute. Judge Sarah Netburn who is overseeing the case has scheduled the conference for August 31.

The legal tussle between Ripple and SEC was initiated by the latter after it accused the blockchain company and its executives of selling $1.3 billion worth of unregistered securities. In July, Judge Netburn agreed to Ripple’s request for testimony from former SEC director William Hinman. The former official is widely for his controversial 2018 statement which implied that Ether, the native cryptocurrency of Ethereum, is not a security.

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