There is new Ripple news that is significant for the company. Recently, Ripple Labs filed a request to force the SEC staff to disclose their XRP holdings. Previous requests from Ripple Labs to the US Securities and Exchange Commission have been denied. The US Securities and Exchange Commission staff now has until September 3 to disclose the holdings.
Ripple wants to know who is trading cryptocurrencies from the SEC
Ripple Labs now wants to know exactly, as per this Ripple News, and has filed a motion to have the SEC staff’s XRP holdings shown. In the filing, “MOTION to Compel Preclearance Trading Documents” by attorney James K. Filan reads the following:
… anonymized documents reflecting trading preclearance decisions relating to XRP, Bitcoin, and Ether, or alternatively for such information in aggregate form.
Defendants also seek certifications of XRP holdings from SEC staff – again, with either redacted personally identifiable information or in aggregate form. We met and conferred with the SEC on this issue on July 8, July 15, August 18, and August 25, with no progress.
Previous requests have been denied by the SEC
To date, the SEC has always denied Ripple Labs’ previous inquiries. Thus, it has not yet been possible to prove whether the employees of the US Securities and Exchange Commission themselves trade XRP or Bitcoin & Co. Indeed, it would be very interesting to see whether the SEC allows its employees to trade in the controversial digital assets or not.
Now the court has granted the request and the SEC will now be forced to submit its trading policies regarding digital assets. Ripple news of interest to many. Moreover, Ripple had pointed out that the US Securities and Exchange Commission did not consider digital assets as securities until January 19, 2018. This means that employees could buy, sell and hold Ripple, Bitcoin & Co. without restriction.
Therefore, the application also points out the following:
This evidence provides strong support for Defendants’ defense in this case and undermines the SEC’s assertions. In particulardere the now-acknowledged fact that the SEC has not prevented its own employees from selling or buying XRP, notwithstanding its longstanding rules against its employees engaging in securities transactions without prior approval, indicates that the SEC did not conclude until at least January 2018 that sales and offerings of XRP were securities transactions.
In this regard, it should also be said that the SEC maintains a list of prohibited holdings for securities. What is interesting here is that under this securities trading ban, BTC, XRP or ETH never appeared. The court has now given the US Securities and Exchange Commission until September 3, 2021 to respond to this request.
Ripple news: what happens if the SEC refuses?
Attorney Filian responded to this on Twitter as follows:
The SEC can absolutely decide not to comply with the court order. What happens after a certain amount of time is that the judge imposes sanctions against them. If the SEC continues to ignore the order, it may eventually lead to the case being dismissed.
So it remains to be seen what will happen. Of course, here is the Ripple News should there be any news regarding the SEC and Ripple.
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