Ripple Might Expose SEC Employees with Secret XRP Holdings
Ripple could expose SEC Operatives in possession of XRP tokens in its legal battle with the Securities and Exchange Commission, in a countersuit that alleges that XRP tokens used by the organisation's workers are unregistered securities.
Ripple’s Recent Motion
James Filan, Ripple's attorney, made the announcement on August 27th that the firm has filed a fresh petition with the SEC asking for relevant information on its employees' XRP holdings. Ripple has met with the commission on more than four occasions in its bid to recover private information on SEC workers possessing XRP. This happened after Ripple Inc. obtained a court order granting the investigation.
Ripple Inc. has stated it wants information on employees’ XRP holdings, along with other necessary private information that has been removed or presently provided in aggregate form.
The Securities and Exchange Commission has so far resisted regulations that prohibit its staff from trading cryptocurrencies. This will be consistent with the commission's past opinions on digital assets not being securities, which is the biggest factor in SEC’s argument against Ripple. Conversely, Ripple believes SEC regulations have opened up a window of opportunity for its workers to collect XRP.
Bradley Garlinghouse (CEO of Ripple) and Christian A. Larsen, who is the company's director, are among the petitioners (Executive Chairman of Ripple). In the defendants' own words, they want records that include "anonymized documents reflecting [the SEC’s] trading preclearance decisions with regard to XRP, Bitcoin, and Ether."
Winning the Legal Battle
Currently, the newly demanded information is the next stage in a continuous and heated legal battle that has dragged on since 2020. Past events have seen Ripple record some successes as the crypto industry continues to be better understood.
In May, a US judge refused the SEC's request to access information that could have revealed internal conversations by Ripple about the sale of its token, stopping the avenue the agency wanted to use to hold them accountable.
To sum up, Ripple was recently accepted as part of a current open procedure to access data on the corporation's XRP gross sales made on Binance, where Ripple's team of legal practitioners insists that the “overwhelming majority” of XRP gross sales on Binance were made outside of the United States. Using the Securities Acts, Ripple’s move damages the SEC's case of XRP as a security, which only applies to domestic offers and sales.
Obtaining private information about SEC workers’ holdings of XRP would be yet another major win that could prelude a final rippling victory for Ripple.
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