A federal judge has denied the U.S. Securities and Exchange Commission (SEC) access to Ripple’s communication with lawyers.
The SEC wanted the San Francisco-based company to produce any legal advice it received on whether its offers/sales of XRP violated any securities laws.
The SEC argues that Ripple is “artfully” pleading a “good faith defense,” which means the case would center on whether the company thought its actions were legal. Such a defense would waive Ripple’s attorney-client privilege on any communication that could shed light on whether it actually believed it was following the law or not.
Ripple’s lawyers, however, say the company’s legal arguments in the case revolve around the SEC’s “lack of clarity and fair notice” regarding the company’s legal obligations.
Explains Judge Sarah Netburn,
“Ripple claims that the SEC’s actions and inactions failed to provide market participants with fair notice that the agency considered XRP a security. In support, it cites to the SEC’s eight-year delay