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Court Prohibits Ripple from Searching SEC Staff's Emails

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Fri, 05/07/2021 - 05:53
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Alex Dovbnya
The court has confirmed that the SEC doesn't have to produce informal staff communications about XRP, Bitcoin, and Ethereum
Court Prohibits Ripple from Searching SEC Staff's Emails
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Magistrate Judge Sarah Netburn has confirmed her earlier ruling, stating that the U.S. Securities and Exchange Commission doesn’t have to produce personal correspondence of its employees, such as emails:

The SEC need not produce informal intra-agency communications, such as emails, and such communications need not be searched or logged.

As reported by U.Today, the SEC was seeking an order that would prohibit Ripple from searching the staff’s personal devices.

In its Apr. 21 letter, the regulatory watchdog claimed that the company was requesting “random and irrelevant” communications that extend beyond the court’s Apr. 6 order, accusing it of harassment. In particular, Ripple demanded emails from former SEC Chair Jay Clayton:

There is no basis to believe that SEC employees used personal email accounts or devices to express agency interpretations or views on Bitcoin, ether, or XRP to the market.   

Related
Ripple's XRP Sales Grew 97 Percent in Q1

The SEC has to produce internal memos  

At the same time, the judge has ruled that the SEC has to produce formal position papers and internal memos that mention Bitcoin, Ethereum, and XRP, delivering a legal setback to the regulator.      

The agency also must turn over its external communications with foreign counterparts and market participants.    

Netburn is yet to rule on whether or not the SEC can send Memorandum of Understanding (MoU) requests to foreign regulators.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.