Court Upholds Ripple on SEC Disclosure, Orders In-Camera Review

Court Upholds Ripple on SEC Disclosure, Orders In-Camera Review

Justice of the Peace Sarah Netburn has ruled that the US Securities and Exchange Commission (SEC) must submit the documents requested by Ripple for review in-camera. This was announced by attorney James Filan.

At a hearing on August 31, which was held via teleconference, the parties discussed the deliberative process privilege of the SEC. This is a principle of law that allows the regulator to refuse to disclose documents or testify, citing the confidentiality of data and sources.

Netburn said that Ripple made a strong case for its request, and therefore it needs to review the documents to determine whether it is necessary to protect them from disclosure.

The term review in camera used by Netburn means that at this stage, respondents will not be able to review the data provided by the SEC. If the judge deems them important to the process, they will be made public at a public hearing.

SEC claims a special treatment for Ripple

The Commission representative tried to challenge the judge’s decision, claiming a Deliberative Process Privilege (DPP) and creating a “dangerous” precedent for the regulator, but Netburn rejected these arguments.

According to her, Ripple will not receive special treatment, since the company’s lawyers will not see the documents until it decides otherwise.

Netburn must review the SEC information before September 28, after which it must decide whether it is justified to conceal it. The regulator was instructed to submit documents with a minimum number of amendments.

During the meeting, the issue of providing the SEC with access to the correspondence of Ripple employees in the Slack messenger was not raised.

Earlier, the ex-director of the SEC’s corporate finance department, William Hinman, said that he had warned Ripple about the risk of XRP being recognized as a security.

Recall too that Brad Garlinghouse’s company has requested data on the transactions of SEC employees not only with the XRP token, which the regulator calls an unregistered security but also with Bitcoin and Ether.

Original Source :atozmarkets.com

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