Ripple Labs Inc. has come out victorious against The U.S. Securities and Exchange Commission (SEC) related to the revealing of employees personal finance records.
Ripple executives Christian Larsen and Brad Garlinghouse are finally able to breathe a little easier following the recent court decision. Magistrates Judge Sarah Netburn has ruled in favor of the Ripple executives in a recent ruling. The defendants motion has been granted by Netburn, allowing Larsen and Garlinghouse to not give their personal finance records to the SEC.
Ripple battles SEC charges
The recent drama between Ripple and the SEC began in December 2020, when the SEC filed charges against the company and its executives for selling over $1.3 billion in XRP tokens. The sale has been considered illegal by the SEC, who claim that XRP is an unregistered security.
Ripple has however defended their case, stating that XRP operates exactly the same as bitcoin and ethereum. Essentially it is a cryptocurrency and does not fall under any securities laws.
The ongoing case has seen the price of the XRP token drop to new yearly lows. Due to the charges against Ripple by the SEC, exchanges began delisting the XRP token. Major cryptocurrency exchanges such as Coinbase halted trading of XRP while the case is ongoing.
Small win for Ripple Labs
In the latest developments, the SEC requested permission to gain access to Larsen and Garlinghouse’s personal finance records. However the request was met with major pushback from the Ripple executives. The pair requested the subpoenas to be blocked, calling it “wholly inappropriate overreach”.
In the latest developments, court documents indicate that the defendants will no longer be required to submit their personal finance records. The signed document states that “The SEC shall withdraw its Requests for Production seeking the Individual Defendants’ personal financial records and withdraw its third-party subpoenas seeking the same”.
XRP reacts positively as price soars
XRP reacted well to the news. The token soared 40% on Saturday as it climbed to $1.40. The price rally saw XRP reach a new three year high. The news appears to have accelerated price action.
Popular trader Peter Brandt commented on the price action, stating that XRP could soar much higher than expected based on the recent ruling, and “the madness of crowds”.