The Ripple Labs has been celebrating a major victory since the court recently denied the request of the SEC to get access to legal advice. However, without losing any more time, Ripple Labs has moved its strategy from defense to offense. The defendants have now filed a motion in court for SEC to produce evidence about their internal correspondence that distinguishes XRP from other digital assets like Bitcoin and Ethereum.
A similar motion filed by Ripple has been denied before. However, this time around, Ripple Labs’s legal team is aiming for an electronic mailbox specifically. As per the motion to compel that is a formal request to the presiding judges to instruct SEC to produce the communication from the FinTech@SEC.gov mailbox for declaring the clear status of XRP contrast from other digital assets in the crypto-verse. If the court levied the motion, the SEC would have until June 28, 2021, to comply.
Independent Legal Correspondent Jeremy Hogan Claims that SEC would soon Opt-out of the Ripple Labs Case
Jeremy Hogan is a legal practitioner and independent consultant who has recently gained popularity for his commentary on the ongoing Ripple labs lawsuit. Last week he took to his Twitter account to claim that under the current circumstances, the best option for SEC is to opt-out of the case before it makes it to the formal trial stage. According to Hogan, SEC would be able to save its integrity by agreeing to a settlement sooner than later.
However, there are chances that the prosecution would found some evidence from the MOUs that it has been mailing vigorously. These MOUs are addressed to the securities regulatory agencies in the countries where Ripple Labs has formed various business ventures. Some of the biggest Ripple correspondents are present in Asia, and one of the biggest Asian players, China has also imposed a nationwide ban on cryptocurrencies due to the recent carbon emission allegations.
The main argument by SEC to filing this case was to protect the interest of the investor and American citizens. However, the presence of the 17,000 movants in the case has put out weight from this claim. The chances of SEC getting an incriminating verdict from this case seem to be a farfetched idea. However, while the lawsuit is going on, Ripple Labs has distanced itself from XRP, claiming that the altcoin is a native coin to the XRP ledger.
On the other hand, Ripple has also been busy dumping out a massive amount of XRP into the market. In case the Ripple executives can retain a massive amount of XRP on their hands, it would give them an unnatural power over the market and price manipulation advantage. Such a situation could jeopardize the investors’ interests and raise more channels for legal prosecution for the payments giant.