The judge ruled that the U.S. Securities and Exchange Commission (SEC) would be required to initiate enforcement actions against each individual XRP holder if they were allowed to participate in the case as defendants.
Thus, US District Judge Analisa Torres ruled on October 4, that holders of Ripple’s XRP cryptocurrency cannot act as defendants in the current Ripple litigation.
This decision was made after a number of XRP holders intended to submit a summary of the “friends of the court”. Which would allow them to join the case as defendants. Also, support Ripple in its claims that the token does not violate securities laws.
The SEC plans to receive recordings from Ripple
In addition, SEC plans to receive audio and video recordings from Ripple of meetings where they discussed the current lawsuit. Lawyer James K. Filan announced this.
According to him, we are talking about meetings at which the company’s CEO Brad Garlinghouse and its co-founder Chris Larsen. As well as other high-ranking employees discussed topics related to the lawsuit.
Ripple appealed to Judge Sarah Netburn with a request to extend the deadline for responding to the regulator’s request until October 8.
Internal reports of general meetings
Earlier, Ripple agreed to transfer to the Commission internal records from general meetings starting from the fourth quarter of 2014. As well as meetings with SBI Holdings. According to some reports, the array includes discussions by the company’s employees of the SEC investigation.
In the new appeal, the regulator claims that the defendant used an “erroneous search methodology” for records. Excluding “very convincing evidence”.
Later, in early September, the court ordered the fintech company to provide the Commission with access to the messages of its employees in Slack communication platform. Netburn later rejected Ripple’s motion regarding disclosure of information about SEC employees’ transactions with Bitcoin, Ethereum and XRP.