The latest on the SEC vs Ripple lawsuit

It looks like the next update regarding the SEC vs Ripple Labs lawsuit will come a little later than expected.


SEC Privilege of Deliberation Suspends Case

The court granted both parties’ request to move the expert’s testimony from January 14 to January 19, 2022. The reason for the move is said to be related to scheduling issues.

In the meantime, crypto lawyer John Deaton, who represents the interests of thousands of Ripple holders, was a guest at the PBD podcast. He shared his views on the matter and the potential outcome for Ripple investors.

Deaton reminded viewers of the SEC’s privilege of deliberation, which is an agency’s right to shield documents related to its decision-making processes.

Speaking to Patrick Bet-David, he said the following:

It’s about the internal documents at the SEC, their documents about Bitcoin and their documents about Ethereum. There is even a document from June 13, 2018. This is about evaluating Ripple and whether it is a security. The SEC has refused to hand over any of these documents. They claim they are privileged. Also, they claim that they have never made an official statement about Bitcoin or Ethereum.

In addition, Deaton disagreed with the idea of ​​Ripple and XRP holders working together. Deaton claimed to have spoken to 60,000 people and stated that of the first-time buyers of XRP, 52.8% had never even heard of Ripple.


Different outcomes for Ripple

When asked how the lawsuit could end, Deaton replied:

“At some point, Ripple might say, ‘Listen, we’re only going to sell to accredited investors now.’ There are ways around it, but I don’t see it happening. It can resolve itself, by the verdict, or it can go to a verdict.

Deaton concluded by noting that there has been a similar case before. The jury decided that a digital asset was not an unregistered security.


Evidence of controversy

Both Ripple and the SEC have since filed additional letters to expand their arguments. This was a result of a court decision in the Natural Resources Defense Council case [NRDC] against US Environmental Protection Agency [EPA]. This eventually led to an adjustment of the scope of the privilege of deliberation.

However, the SEC continues to maintain that all of its records are protected.

Ripple co-founder Chris Larsen has been in the news lately after proposing a way for Bitcoin miners to help save the environment. Larsen suggested moving away from the Proof-of-Work consensus mechanism and adapting the code to reward miners while reducing their carbon footprint.

As expected, reactions were mixed with many Bitcoin proponents claiming that such a move would destroy the coin’s identity. And this would make the network much more insecure.

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