- XRP holders have been able to celebrate a victory against the SEC as the court has granted permission to file a motion to intervene.
- The filing deadline is April 19, with comments from the SEC and Ripple due to the court by May 3.
Attorney John E. Deaton and XRP holders yesterday claimed an important first partial victory regarding intervention in the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple. After Deaton filed a formal pre-filing pleading, he was granted permission to file a motion to intervene in the ongoing case on behalf of over 10,500 XRP holders. In her order, Judge Analisa Torres also ruled on the time schedule.
According to the ruling, the motion to intervene must be filed no later than April 19. After that, the SEC, as the plaintiff, must file its opposition paper, and Ripple, Garlinghouse and Larsen must file their reply paper in court by May 3, if available. Again, two weeks later, on May 17, Deaton has to send his response to the SEC’s opposition paper and Ripple’s response to Judge Torres, if any.
For the XRP community, this is a major partial victory, while for the SEC it is a resounding defeat, especially since the regulator previously argued vehemently for a denial. Even though Judge Torres did not grant the motion (yet), she rejected the SEC’s arguments that XRP holders should be denied the opportunity to file.
As CNF reported, the SEC and Ripple filed their position papers on Deaton’s intervention a few days ago. The regulator argued that Deaton is not explaining what claims he wants to make. The SEC also reasoned that it is not liable. Arguably the SEC’s most controversial and misleading claim, however, was that Deaton and the intervenors are only concerned with a relisting on crypto exchanges in order to be able to “trade XRP speculatively again.”
Reacting to this, Deaton stated via Twitter that the SEC letter to Judge Torres was “the most misleading letter” he had ever read submitted to a court.
Tenreiro is clearly trying to make me look bad by claiming that my motivation in seeking to intervene is for profit taking. When I read that, I said to myself: ‘I don’t talk about the price of #XRP – what the hell is he talking about?’
The truth is I never said the purpose of re-listing was for price appreciation or anything close to that. But that’s what he’s claiming I said. I looked it up. The comment that I made was over the likelihood of whether the SEC would inform exchanges that they could re-list.
As Deaton discussed, there are other examples in which the SEC twists or miscontextualizes the attorney’s words to influence the court and make the intentions of Deaton and the XRP holders look bad.
XRP Forecast October 18 — 22, 2021
XRP/USD end the trading week at 1.1394 and continue to move as part of the rise and the bullish channel. Moving averages indicate a bullish trend. Prices broke through the area between the signal lines upward, which indicates pressure from buyers and a potential continuation of the cryptocurrency growth from the current levels. At the moment, we should expect an attempt to develop a correction and a test of the support area near 0.9255. Where can we expect a rebound again and a continuation of the rise of the cryptocurrency to the area above the level of 1.8055.
Cryptocurrency XRP Forecast October 18 — 22, 2021
An additional signal in favor of the growth of XRP quotes in the current trading week October 18 — 22, 2021 will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for the Ripple cryptocurrency will be a fall in prices and a breakdown of the 0.6505 area. This will indicate a breakdown of the support area and a continued fall in XRP/USD quotes with a target below the level of 0.5005. Confirmation of the growth of the cryptocurrency will be the breakdown of the resistance area and the closing of quotations above the 1.3655 area.
Cryptocurrency XRP Forecast October 18 — 22, 2021 suggests an attempt to test the support level near the 0.9255 area. Where can we expect the continued growth of quotations with a potential target at the level of 1.8055. An additional signal in favor of a rise in XRP value will be a test of the trend line on the relative strength index (RSI). Cancellation of the cryptocurrency growth option will be the breakdown of the 0.6505 area. This will indicate a continued decline with a target below 0.5005.
XRP Lawsuit: SEC repeats “privileged documents” argument like a broken record
After hitting face first in the DPP dispute, the SEC has continued to assert its “privileged documents” stance. The latest development in the XRP lawsuit saw the SEC submit a redacted version of the three additional documents requested by Ripple for in-camera review on the public docket. The commission also submitted an explanation for its privilege assertions for all those documents that the plaintiff had either redacted or withheld by logging them as “privileged”.
SEC asserts protection under DPP and irrelevance of documents
The SEC has reinstated its “privileged” stance, noting that the documents are pre-decisional and deliberative, and therefore protected by the deliberative process privilege. The plaintiff claimed that the court should not be disarming the SEC’s privilege because the additional documents along with SEC’s September 14 documents that the commission filed under Appendix A are both protected under DPP, and discovery will further discourage government employees from genuine deliberations regarding crypto regulations. Additionally, the commission asserts that the documents are also irrelevant to both, SEC’s claims, and defendants’ objections.
“The documents on Appendix A, the Additional Documents are protected by the DPP, and the compelled release of these documents would discourage meaningful deliberations among SEC staff relating to regulatory activities in the digital asset space. Moreover, like the Appendix A documents, the Additional Documents are wholly irrelevant to the SEC’s claims or the Defendants’ proposed defenses…None of these documents even comes close to addressing whether Defendants’ offerings of XRP are securities transactions. The Court should not pierce the SEC’s privilege under these circumstances.”
Earlier this month the Court granted Ripple’s September 24 appeal, seeking the addition of three documents by the SEC for in-camera review. These documents include the two documents related to the SEC’s meetings with law firms, along the email trail concerning discussions with a third party who received guidance from the SEC to analyze its digital asset under the framework set forth in Hinman’s June 14, 2018, speech.
XRP Lawsuit: SEC aims to make XRP skip the bull run with an Expert Discovery Extension Appeal
The latest update in the XRP lawsuit saw the SEC file a letter requesting the Court to extend the expert rebuttal report deadline to November 12, 2021, and the expert discovery deadline to January 14, 2022, from the former date of November 12, 2021. The plaintiff noted that the extension will allocate both parties sufficient time to prepare rebuttal reports and depose a minimum of 14 expert witnesses.
Ripple Opposes SEC extension appeal to save XRP from an isolated bear run
While consenting to the extension of the rebuttal report deadline until November 12, Ripple opposes the January 14 deposition deadline to avoid the case from stretching long enough for XRP to entirely miss the bull run. Furthermore, Ripple also intends to file an opposition to this letter motion on October 18, 2021.
The SEC offered a compromise to Ripple, preponing the expert discovery extension to December 22, but the defense has rejected that offer as well. Ripple argues that the extension would “would likely impact the briefing schedule for summary judgment motion[s].”, as post-December 10, 2021, the Thanksgiving holidays will commence the holiday season.
SEC supports extension appeal with pending motions
The SEC objects that the case is even less ready for summary judgment motions as expert discovery has commenced with an incomplete factual record. The commission noted that on September 1, 2021, Magistrate Judge Netburn granted the SEC’s motion to compel Ripple to produce certain instant messages among its employees, but Ripple has not completed its production of responsive documents and has not provided any timetable by which it will be complete. Along with the incomplete discovery of a granted motion, the plaintiff states that the parties have a total of four pending discovery motions before Magistrate Judge Netburn. The plaintiff claims that even if one motion is granted, the parties will require an additional extension to proceed with the discovery.
“If Magistrate Judge Netburn grants any of the pending motions to compel, at minimum, the parties would need additional time to review and produce the documents at issue…The SEC’s proposed extension is fair and reasonable under the circumstances and should be granted for good cause.”, stated the SEC.