According to Brad Garlinghouse, “today was a good day” for Ripple. According to CNF’s report; In the case with the US Securities and Exchange Commission (SEC), a 1.5-hour exploratory hearing was held yesterday to decide whether Ripple will have access to the SEC’s internal and external documents on the classification of Bitcoin and Ethereum.
Ripple celebrated a “big win” when the judge accepted the motion. The SEC will now have to disclose official internal letters (not emails or similar) and documents related to external communications. However, as lawyer Jeremy Hogan points out in a new video, this decision involved much more than the release of BTC and ETH documents.
Ripple’s “fair reporting” defense played a central role in yesterday’s trial as well. “Fair reporting” principle; It states that authorities must give a warning of fair conduct to regulated parties that a regulation prohibits or requires that something be done. Ripple’s focus of defense is on the SEC’s failure to report enough that the sale of XRP is banned.
The SEC filed a request on March 09 to reject Ripple’s fair reporting defense. According to the editor, he was not required to warn of violations during a non-public investigation. As CNF reported, denial of this defense would have been a huge blow for Ripple.
Important Signals in Favor of Ripple
Judge Netburn first turned to the SEC at the hearing yesterday and asked 5 questions. In his first question, the Judge also asked the SEC the most critical question regarding the motion. However, according to the information received from Hogan; “SEC screwed!”
The first question of the judge; what is now seen as a huge mistake was about the SEC’s personal suing of Chris Larsen and Brad Garlinghouse. His first question was: Is there anyone who was personally sued in one of the cases you referenced? The SEC’s response was an honest “No”. And that’s the point, the Judge already knew that… And this was an opportunity to change the SEC’s mind, but the SEC’s lawyer messed up the whole thing a bit.
Instead, the SEC lawyer discussed why XRP is different from Ethereum and Bitcoin. At that point, at the 15-minute mark, the trial proceeded, as Hogan pointed out, because Judge Netburn had already made an internal decision on Ripple’s motion.
It can be said that yesterday’s victory sent two important signals for Ripple. The first important aspect of this victory was that the SEC would have to create a so-called privilege document diary. This is a summary of the documents the SEC has. Ripple can use this to find additional references and more information. Hogan also noted what this meant for the proceedings:
“Now, if there is a concrete / conclusive type of evidence-type document there, within the next 30 days, the SEC will try to get out of this case.
The second important aspect is that Judge Netburn also sent a clear signal in favor of Ripple regarding the fair notification defense. According to Hogan; the court will not order the SEC to spend “hundreds of hours reviewing tens of thousands of documents” on Ripple’s defense of fair reporting. Because he knows that the entire defense will be thrown out the door next month.