{"id":3646,"date":"2021-05-21T00:33:12","date_gmt":"2021-05-20T23:33:12","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=3646"},"modified":"2021-05-21T00:33:16","modified_gmt":"2021-05-20T23:33:16","slug":"sec-blocks-overseas-partners-from-commenting-on-ripple-xrp-lawsuit","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/sec-blocks-overseas-partners-from-commenting-on-ripple-xrp-lawsuit\/","title":{"rendered":"SEC blocks overseas partners from commenting on Ripple (XRP) lawsuit"},"content":{"rendered":"\n
Ripple's request to stop the SEC from seeking information from foreign partners<\/a>, via their respect regulators, gets denied.<\/h5>\n\n\n\n
\"SEC<\/figure>\n\n\n\n

Judge Netburn\u00a0denied\u00a0Ripple\u2019s\u00a0motion to stop the discovery of foreign requests for assistance by the U.S Securities and Exchange Commission (SEC), as per a filing yesterday.<\/p>\n\n\n\n

The decision scores a partial victory for the U.S. securities regulator. It seeks to validate allegations that Ripple\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> and two key executives had sold\u00a0unregistered securities\u00a0in the XRP token.<\/p>\n\n\n\n

General public sentiment had shifted to Ripple during the unfolding of the pre-trial process. But yesterday\u2019s ruling suggests the SEC is far from done.<\/p>\n\n\n\n

Ripple tried to block foreign document discovery<\/h2>\n\n\n\n

In a\u00a0letter\u00a0dated April 16, Ripple\u2019s legal team sought to stop the SEC from contacting foreign regulators to acquire information about Ripple on their behalf.<\/p>\n\n\n\n

The motion for local rule argued that leveraging Memoranda of Understanding (MOU) agreements between foreign regulators amounted to improper use of the process.<\/p>\n\n\n\n

\u201c[The SEC\u2019s request falls] outside the scope of the Federal Rules and the Hague Convention by improperly leveraging Memoranda of Understanding (\u201cMOU\u201d) with foreign regulators, who then, at the SEC\u2019s request, serve burdensome document requests on entities under the foreign regulator\u2019s jurisdiction.\u201d<\/em><\/p><\/blockquote>\n\n\n\n

In turn, this places an unnecessary burden on entities serving under the foreign regulator\u2019s jurisdiction. The letter even went as far as calling this \u201can unwarranted intimidation tactic\u201d by the SEC.<\/p>\n\n\n\n

MOUs refer to formal agreements between two or more parties. In this example, the SEC is part of a network of regulators who agree to share information. MOUs facilitate the process of foreign regulators collecting information on behalf of the originator.<\/p>\n\n\n\n

Judge Netburn sees nothing wrong with this line of inquiry<\/h2>\n\n\n\n

In her ruling,\u00a0Judge Netburn\u00a0summarized the issue by saying the SEC is a signatory to the Multilateral Memorandum of Understanding and other bilateral agreements that promote sharing information across borders.<\/p>\n\n\n\n

She added that these agreements permit the SEC to request information from foreign securities regulators. More crucially, she said the request does not fall outside of the Court\u2019s and foreign counterpart\u2019s supervision.<\/p>\n\n\n\n

\u201cthe Court\u00a0concludes\u00a0that the SEC\u2019s use of the Requests is\u00a0permissible\u00a0and not an affront to the Court\u2019s\u00a0jurisdiction. There has been no argument that the\u00a0Requests exceed the scope of any governing bilateral agreement.\u201d<\/em><\/p><\/blockquote>\n\n\n\n

What\u2019s more, in denying Ripple\u2019s motion for local rule, she dismissed claims that the requests were intimidation tactics.<\/p>\n\n\n\n

Judge Netburn concluded her ruling by ordering the SEC to produce all documents obtained via the requests made to date. To \u201cimprove transparency in the process,\u201d she also ordered the securities regulator to produce copies of all previously served requests, which must be documented in a \u201cprivilege log.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Ripple’s request to stop the SEC from seeking information from foreign partners, via their respect regulators, gets denied. Judge Netburn\u00a0denied\u00a0Ripple\u2019s\u00a0motion to stop the discovery of foreign requests for assistance by the U.S Securities and Exchange Commission (SEC), as per a filing yesterday. The decision scores a partial victory for the U.S. securities regulator. It seeks […]<\/p>\n","protected":false},"author":63,"featured_media":3647,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81],"tags":[142,143],"class_list":["post-3646","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altcoin-news","tag-ripple","tag-sec"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/05\/POgJCVlDTiqex6w5MjWj_file.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=3646"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3646\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/3647"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=3646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=3646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=3646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}