Ripple’s legal team has filed a motion to compel the U.S. Securities and Exchange Commission (SEC) to reveal whether it allowed its employees to trade XRP.
The SEC requires its employees to seek clearance before they trade any security. However, according to Ripple’s motion, the SEC had not adopted any policy restricting its employees from trading digital assets prior to January 2018.
That month, the regulator reportedly released a policy stating that digital assets could be subject to existing prohibitions against securities transactions, but it didn’t specify which assets – if any – would be classified as securities.
Ripple’s lawyers argue this internal policy indicates that the SEC, at least until January 2018, had not concluded that sales and offers of XRP were securities transactions.
“That fact undermines the SEC’s allegations that the Individual Defendants were reckless in failing to determine as early as 2013 that offers and sales of XRP were securities. Likewise, it supports Ripple’s fair notice