Ripple, the company’s affiliate XRP (XRP) token has achieved another goal in its legal compliance with the U.S. Securities and Exchange Commission by gaining a right to see the regular provider determine which cryptocurrency is a security, reported CoinDesk on Tuesday.
What happened: On Tuesday, Judge Sarah Netburn in New York’s Southern District Court granted Ripple access to the SEC’s minutes and memos, which, according to CoinDesk (via Law360), “expressed the agency’s interpretation or views on cryptocurrency.”
Netburn reportedly said these documents were traceable, adding that Ripple’s discovery was a high-stakes win.
The SEC claims Ripple made an unregistered $ 1.3 billion securities offering and named CEO Brad Garlinghouse and co-founder Chris Larsen in its legal actions.
Ripple, meanwhile, claims that XRP is a currency, not an asset class, that must be registered as an asset.
Why it matters: According to Ripple attorney Matthew Solomon, CoinDesk, if the SEC privately determines that XRP is a currency rather than a security, it could be a “game over” for the SEC’s entire case.
According to reports, Ripple is hoping to find evidence that at some point the regulator defined XRP as similar Bitcoin (BTC) and ether (ETH), both currencies are usually not accepted as non-security-relevant instruments.
XRP was trading 15.35% higher at $ 1.02 at press time. BTC and ETH traded 1.3% and 1.8% lower at $ 58,266.06 and $ 2,097.41, respectively.
See also: Bitcoin controlled by China, Ripple advises SEC in light of an upcoming litigation
This is the second legal point that Ripple has achieved in the dispute with the SEC in days. On Monday, Ripple reached an agreement with the regulatory authority to prevent private email correspondence from being fully disclosed.
Meanwhile, XRP, the token associated with Ripple, shot above the psychologically important $ 1 level on Monday. The rise is attributed to the exuberance of the so-called XRP army by a commentator.
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