Key Takeaways
- The goal of Ripple was to compile a list of all bitcoin transactions performed by SEC employees. The court ruled against such a claim.
- The request was submitted on August 27 according to an official transcript.
- Today, XRP's price has risen to $1.0, and it is still recovering.
According to them, their reasoning for requesting the information was that if it was found that SEC personnel had traded XRP.
It would reveal at the very least that the SEC was not clear about the nature of XRP, and at worst show that the SEC believed XRP was not a security previously.
Defendants assert that private trading choices will reveal the unclear status of XRP, as well as the SEC's assumption that XRP was a security.
The evidence argues that is posted online in questioned relation to the SEC’s allegations of recklessness may diminish the circumstances in which individual defendants engaged in illegal activity
Defendants claim that they should be allowed to learn if the SEC granted its employees permission to conduct XRP transactions as participants in the market.
However, Judge Sarah Netburn has some issues with Ripple.
First, she is in agreement with the SEC's assertion that "the trading history of SEC employees does not play a role in the trading process of any security, especially the trade of XRP," as the SEC Ethics Counsel had not made any recommendation for any rule pertaining to XRP.
Thus, the SEC employee trading history is irrelevant in this case.
For the opposing side, the absence of a legal basis was a significant issue.
Federal law protects the private rights of workers of the U.S. Securities and Exchange Commission, who are citizens of the United States.
While Congress has presumptively banned the publication of such financial information in order to protect government workers' privacy, it may also be presumed that the same applies to companies and private citizens.
They made the same point in the past, as I recall. The SEC requested permission to review Slack conversations.
Cryptopotato noted earlier that Ripple said creating this kind of paperwork would be a lengthy and costly procedure.
Although this was a commendable effort, the courts ultimately sided with the SEC.
Finally, the court goes on to clarify that, in reality, the SEC had no trading policy throughout the time of interest for the case, and its employees did not act in breach of the regulation even if they had traded cryptocurrencies.
The disappointing news in no way triggered a sell-off of XRP. In general, the XRP market mirrors the state of the Ripple-SEC scenario and will go up in value when Ripple wins and down when the firm loses.
The recent increase in XRP doesn't appear to be the result of Ripple's proposition; rather, it seems to be a natural response to the current market situation.
Bitcoin, the SP500, and other global markets are now experiencing anxiety due to the infamy surrounding Evergrande, a Chinese construction conglomerate, that imploded in a scandal.
Should the SEC's trading history be released to Ripple?
