Ripple Prevents SEC from Getting Access to Legal Records of XRP Sales In Recent Court Ruling

San Francisco-based blockchain startup Ripple has registered another major win in its ongoing case with the U.S. Securities and Exchange Commission (SEC). On Sunday, May 30, Judge Sarah Netburn of the District Court for the Southern District of New York, ruled against the SEC motion requesting access to Ripple’s legal concerns regarding the XRP status.

By getting access to the legal memos, the securities regulator wanted to prove that Ripple was well aware that XRP could be a form of ‘security’, however, it preferred to ignore the warnings. However, it seems that the SEC’s plea hasn’t landed in its favour.

In a filing available to the public, Judge Sarah Netbrun added: “Ripple asserts that the SEC’s requested communications are protected by the attorney-client privilege, which has not been waived”.

Besides, the ruling mentions that Ripple gets the attorney-client privilege which is meant “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.”

One of the biggest issues in the legal battle between the SEC and Ripple has been about ‘fair notice’. Blockchain startup Ripple claims that the SEC hasn’t issued any ‘fair notice’ that the company has been committing any securities violations. In its defense, Ripple questions that why it took for the SEC eight long years to file a case against it?

Besides, Ripple also notes that regulators like FinCEN and the U.S Justice Department already declared XRP as a convertible virtual currency. With such defense, Ripple is trying to shift the focus of the case on SEC’s inactions as well as the state of mind.

In her concluding note concerning this specific matter, Judge Netbrun said: “The Court takes no position about whether Ripple’s pleaded defense is cognizable or if it will prove meritorious. I reach only the limited question of whether Ripple put its subjective state of mind or advice of counsel at issue merely by raising the defense, thus waiving its privilege. I conclude it did not”.

The judge further added: “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”.

With this positive news for Ripple, XRP’s price has shot 10% today to $1 despite the market trending downwards.