{"id":199212,"date":"2021-09-16T23:00:15","date_gmt":"2021-09-16T22:00:15","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=199212"},"modified":"2021-09-16T19:30:57","modified_gmt":"2021-09-16T18:30:57","slug":"ripple-xrp-v-sec-gets-new-twist-after-privileged-documents-blocked","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ripple-xrp-v-sec-gets-new-twist-after-privileged-documents-blocked\/","title":{"rendered":"Ripple (XRP) v SEC gets new twist after privileged&#8217; documents blocked"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The US Securities and Exchange Commission (<\/span><a href=\"https:\/\/cryptoslate.com\/gary-gensler-urges-crypto-exchanges-to-register-with-sec-says-investors-will-be-protected\/\"><span style=\"font-weight: 400;\">SEC<\/span><\/a><span style=\"font-weight: 400;\">) recently <\/span><a href=\"https:\/\/www.dropbox.com\/s\/2espwt45m017aqo\/SEC%20Letter%20Brief%20on%20DPP.pdf?dl=0\"><span style=\"font-weight: 400;\">filed<\/span><\/a><span style=\"font-weight: 400;\"> a letter regarding the Court\u2019s order to submit allegedly privileged documents requested by <\/span><a href=\"https:\/\/cryptoslate.com\/this-isnt-about-ripple-crypto-community-reacts-to-secs-regulation-through-litigation-strategy\/\"><span style=\"font-weight: 400;\">Ripple<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the letter, the SEC argued that all documents listed in the submission, which will be reviewed by Judge Sarah Netburn in camera, are protected by the deliberative process privilege (\u201cDPP\u201d).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the SEC, many logged entries are at the same time also protected by the attorney-client privilege and the work product doctrine.<\/span><\/p>\n<h2><strong>Motion practice recap<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cThe SEC has filed its Letter Brief regarding the allegedly privileged documents it's withholding from Ripple. The SEC claims that every single document that will be reviewed by Judge Netburn in camera is privileged,\u201d summarized James K. Filan, a former federal prosecutor for the US Attorney\u2019s Office for the District of Connecticut, who also shared the filing on Twitter.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/XRPCommunity?src=hash&ref_src=twsrc%5Etfw\">#XRPCommunity<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/SECGov?src=hash&ref_src=twsrc%5Etfw\">#SECGov<\/a> v. <a href=\"https:\/\/twitter.com\/hashtag\/Ripple?src=hash&ref_src=twsrc%5Etfw\">#Ripple<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/XRP?src=hash&ref_src=twsrc%5Etfw\">#XRP<\/a> The SEC has filed its Letter Brief regarding the allegedly privileged documents it&#39;s withholding from Ripple. The SEC claims that every single document that will be reviewed by Judge Netburn in camera is privileged.  <a href=\"https:\/\/t.co\/w307Ewlvme\">https:\/\/t.co\/w307Ewlvme<\/a><\/p>\n<p>&mdash; James K. Filan ???? (@FilanLaw) <a href=\"https:\/\/twitter.com\/FilanLaw\/status\/1437941716183666690?ref_src=twsrc%5Etfw\">September 15, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span style=\"font-weight: 400;\">On August 10, Ripple filed a motion to compel the production of documents protected by the DPP, which included an \u201cAppendix A.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On August 31, the Court ordered the regulator to produce the documents listed in the appendix for an in-camera review.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As clarified in the letter, the appendix consists of 13 entries, nine of which are internal SEC documents, while the other four entries include SEC communications with other law enforcement agencies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the regulator stated that it included in its privilege logs \u201cmemoranda or formal position papers discussing Bitcoin (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\"><span style=\"font-weight: 400;\">BTC<\/span><\/a><span style=\"font-weight: 400;\">), Ethereum (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\"><span style=\"font-weight: 400;\">ETH<\/span><\/a><span style=\"font-weight: 400;\">), and <\/span><a href=\"https:\/\/cryptoslate.com\/coins\/xrp\/\"><span style=\"font-weight: 400;\">XRP<\/span><\/a><span style=\"font-weight: 400;\">,\u201d it pointed out that the majority of the entries represent internal SEC communications, notes, and drafts, which are not responsive to the Court\u2019s orders, and were logged \u201cin a good faith effort to avoid further litigation.\u201d\u00a0<\/span><\/p>\n<h2><strong>Legal memo that addresses the application of Howey to XRP<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The agency pointed out that only one of the intra-agency documents in Appendix A is \u201can internal memorandum or formal position paper that the SEC was required to produce or log pursuant to the Court\u2019s orders,\u201d while underscoring that this document is protected by all three privileges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the SEC, the email from the Office of the Chief Counsel for Corporation Finance and an enclosed memorandum with a preliminary legal analysis of XRP attached were \u201cdrafted in anticipation of making a decision about whether to charge Ripple with violating the securities laws.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As explained by the regulator, \u201cthis legal analysis was prepared to assist Enforcement staff in their analysis of Ripple\u2019s XRP transactions under SEC v. W.J. <\/span><a href=\"https:\/\/cryptoslate.com\/sec-opposes-ripple-xrp-request-relating-to-controversial-howey-test\/\"><span style=\"font-weight: 400;\">Howey<\/span><\/a><span style=\"font-weight: 400;\">, 328 U.S. 293 (1946).\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other entries include sets of handwritten notes taken by SEC officials during meetings, including meetings with outside entities, such as <\/span><a href=\"https:\/\/cryptoslate.com\/legendary-trader-points-out-bearish-cme-gap-as-bitcoin-ethereum-take-a-hit\/\"><span style=\"font-weight: 400;\">CME<\/span><\/a><span style=\"font-weight: 400;\">, a major derivatives market, and Japanese financial conglomerate, <\/span><a href=\"https:\/\/cryptoslate.com\/two-japanese-firms-turn-to-ripple-xrp-tech-to-power-remittances\/\"><span style=\"font-weight: 400;\">SBI<\/span><\/a><span style=\"font-weight: 400;\"> Holdings, which counts as one of Ripple\u2019s key partners.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The regulator also listed communications reflecting inter-agency collaboration in deliberations among the SEC, Treasury, and the CFTC.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another entry consists of an email enclosing a draft of the Hinman Speech for review and comment by SEC officials.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the submission, the SEC also listed different presentations and emails containing talking points and Q&A sessions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To conclude, the SEC argued that \u201cthe risk of impending privileged deliberations about not only XRP, but also Bitcoin and Ethereum is especially high\u201d due to the \u201csensitive nature\u201d of the agency\u2019s <\/span><a href=\"https:\/\/cryptoslate.com\/the-sec-may-sue-coinbase-if-the-exchange-offers-crypto-lending\/\"><span style=\"font-weight: 400;\">role<\/span><\/a><span style=\"font-weight: 400;\"> in regulating the market.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Securities and Exchange Commission (SEC) recently filed a letter regarding the Court\u2019s order to submit allegedly privileged documents requested by Ripple. In the letter, the SEC argued that all documents listed in the submission, which will be reviewed by Judge Sarah Netburn in camera, are protected by the deliberative process privilege (\u201cDPP\u201d). According [&hellip;]<\/p>\n","protected":false},"author":699,"featured_media":196973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60793,11],"tags":[76769,76128,72399],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ripple (XRP) v SEC gets new twist after privileged&#039; documents blocked<\/title>\n<meta name=\"description\" content=\"The US SEC recently filed a letter regarding the Court\u2019s order to submit allegedly privileged documents requested by Ripple.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/ripple-xrp-v-sec-gets-new-twist-after-privileged-documents-blocked\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ripple (XRP) v SEC gets new twist after privileged&#039; documents blocked\" \/>\n<meta property=\"og:description\" content=\"The US SEC recently filed a letter regarding the Court\u2019s order to submit allegedly privileged documents requested by Ripple.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/ripple-xrp-v-sec-gets-new-twist-after-privileged-documents-blocked\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-16T22:00:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-09-16T18:30:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/08\/ripple-sec.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ana Grabundzija\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ana Grabundzija\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/ripple-xrp-v-sec-gets-new-twist-after-privileged-documents-blocked\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/ripple-xrp-v-sec-gets-new-twist-after-privileged-documents-blocked\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/#person\",\"name\":\"Ana Grabundzija\",\"url\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/05\/cs-author-ana-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/05\/cs-author-ana-300x300.jpg\",\"caption\":\"Ana Grabundzija\"},\"jobTitle\":\"Journalist\",\"description\":\"Dr. Ana Grabundzija is a Zagreb-bred writer with an academic background in anthropology. 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