On 12 Sept, Ripple labs submitted a letter of response opposing plaintiff’s U.S. Securities and Exchange Commission’s request to seal portions of court documents that contain information identifying the SEC’s proposed expert witnesses.
Ripple slammed that SEC has not produced the necessary particularised proof of fact, to justify that the sealing is essential.
The letter was addressed to magistrate Analisa Torres, one of the presiding judge of the lawsuit, and was co signed by the crypto firm along with CEO Brad Garlinghouse and executive chairman Christian A. Larsen.
The SEC and Ripple previously moved to exclude the former’s expert testimony, and on 9th sept, the US regulator filed a petition to seal some of the information from the reply briefs in support of those moves. The plaintiff argued that the move was intended to protect witnesses from potential abuse.
Then in late 2020, the SEC filed a complaint against the San-Francisco based fintech firm claiming that the blockchain firm sold over $1.38 billion worth of XRP, the native coin of the XRP Ledger developed by Ripple Labs, in an unregistered securities offering.
It further accused co-defendants Garlinghouse and Larsen for allegedly aiding and abetting Ripple’s crimes.
A tweet from defence attorney James K. Filan revealed that District Judge Analisa Torres approved the SEC and Ripple‘s joint letter on Monday that outlined schedules for redactions regarding sealing issues. This action is widely viewed as an effort by both parties to expedite the ending of the lawsuit.
Meanwhile, John Deaton, Amicus Curiae in the lawsuit spoke on the possibility of the two parties striking a settlement agreement.
Ripple Labs Headed For A Settlement With The SEC?
In a twitter thread, Deaton stated that the settlement in the case depends on the SEC as well as on the revelation of the Hinman speech drafts, emails, and other related documents.
There are also speculations that in the summary judgement XRP and ETH would be compared. However, the discovery of the Hinman speech document holds the crucial factor.
According to Deaton, Gary Gensler, the chairman of the SEC, would be unwilling to compromise owing to political concerns or in other words, unless it overcomes the political advantages.
Deaton stated that Gensler would receive validation if the SEC were to obtain a Summary Judgment. This will enable the commission to defend their authority to control crypto assets.
