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- Ripple Labs and the US SEC lawsuit has a new development that could cause a splash
- Both the firm and regulator will have to take action and file more documents as per a Court of Appeals decision
- US Court of Appeals for the Second Circuit ruled that the EPA did not have to show all of its records concerning a policymaker’s role
Ripple, one of the largest FinTech firms globally, has faced scrutiny by the United States financial regulators. Since the beginning of this year, those who have been following the FinTech firm and the US Securities and Exchange Commission (SEC) lawsuit might have expected radio silence for the rest of the year amid the court pushing the discovery deadline to January 14, 2022. However, earlier this month, a new development was observed that had caused a splash in the scenario. Hence, both the firm and regulator will have to take action.
Ripple and the US SEC will have to file more documents
Following a Court of Appeals decision in a separate lawsuit, Ripple and the US SEC will file more documents. The report has been revealed through a filing shared by the defense lawyer and former federal prosecutor James K.Filan.
According to the filing, it has been revealed that Judge Sarah Netburn has ordered both the parties in the case to do so. Notably, such a decision came due to the legal developments in a totally different court case.
Judge Sarah Netburn cited the scope of the deliberative process privilege. She highlighted that in light of this decision, by December 8, 2021, both the US SEC and Ripple shall simultaneously file letter briefs.
Read More: Ripple hopes for a formidable solution in SEC case
Read More: Ripple has not violated securities law, says Messari Capital’s CE
It is noteworthy that the Judge has clarified that the briefs should have to be no longer than three pages to supplement their arguments concerning Defendants’ motion to compel.
Why does the Judge call the deliberative process privilege?
The deliberative process privilege refreshes the memory to protect an institution’s decision-making process from external parties. These parties include defendants in the court if required to be.
Outside the cryptosphere, the Natural Resources Defense Council sued the US Environmental Protection Agency (EPA). Notably, the EPA was ordered to produce specific documents regarding its pesticide policies, and the process was part of their reasoning for the same.
Following the scenario, the US Court of Appeals for the Second Circuit ruled that the EPA did not have to show all its records concerning a policymaker’s role.
Will the latest developments help or harm XRP?
Following the latest developments, the XRP community is wondering whether it will help or harm them. Ripple feels the ruffle, as the SEC claimed deliberative process privilege amid the Ripple Labs filed a motion compelling the regulator to produce three additional email documents. Notably, the blockchain firm has previously reported that the filings appeared to be highly relevant to the defense.
However, according to attorney Jeremy Hogan, the law change slightly favors the regulators. And now both the parties will have to submit their arguments within five days after comprehending the decision.
Brad Garlinghouse, the CEO of Ripple, has been found optimistic. According to Garlinghouse, the questions asked by the Judge are reasonable, and he believes that the Judge will soon realize that the case will have a broader implication.