US court denied the US Securities and Exchange Commission’s (SEC) application to receive Ripple’s internal legal guidance regarding the sale of XRP tokens.
SEC Denied Access to Internal XRP Sales Documents
After Ripple won another lawsuit against the US Securities and Exchange Commission, the judge denied the committee’s motion to force payment processors to provide internal information about XRP sales to its internal legal team. As a result, the price of XRP tokens rose to double digits within 24 hours.
In early May, the Securities and Exchange Commission asked the court to order Ripple to produce any relevant legal internal communication documents that the agency believed would determine whether the company’s XRP sales comply with federal securities laws.
However, U.S. District Judge Sarah Netburn supports blockchain-based payment processors. After the ruling this weekend, the judge ruled against the SEC’s motion.
Regarding the legal and client rights used by Ripple in his defense, Judge Netburn stated that it was to “encourage full and frank communication between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice.”
Although this privilege may be waived in certain circumstances, the judge said the lawsuit between Ripple and the SEC is not.
“Accordingly, the SEC’s motion is denied. If at some later date, Ripple raises its good faith beliefs or relies upon its privileged communications in support of its fair notice defense, the plaintiff may renew its application to the Court.” – reads the verdict.
Attorney General Jeremy Hogan called the court’s ruling “very important” as it ultimately hampered the path the SEC wanted to take.
XRP Reacts With Increase in Price
The price of XRP was hit hard by the initial SEC charges and reacted immediately to recent developments. After Ripple took its first two wins, the native token skyrocketed, and a similar situation has occurred in the past 24 hours.
The XRP fell below $0.9 and then rose double digits. As a result, it hit a four-day high above $1.
BTCUSD. Source: TradingView
According to data from CoinMarketCap, XRP outperformed Dogecoin with a market value of more than $46 billion to become the sixth-largest digital asset.
