The US Securities and Exchange Commission and Ripple’s face-off in the pre-trial hearing had a new twist, prompting Ripple to accuse the SEC of its behavior. Ripple has accused the SEC of using the power of the US government to gain an advantage. In addition, the company said the SEC is misleading all its shareholders and promoters by sending requests to assist in the case. Ripple further stated that SEC has internal documents related to Ethereum, Bitcoin, and XRP.
In the released statement, Ripple states that SEC is trying to establish an enforcement action, which will hamper the overall business. On the other hand, SEC asserts that Ripples are not eligible to obtain relief from partner exchanges, having suspended all the XRP trading.
Further accusing the SEC, Ripple said that the security commission is working against the Federal Procedure Rules. However, Ripple lawyers considered inquiring whether the MOU between foreign counterparts and the US government was voluntary or compulsion.
Judge Sarah Netburn, currently holding the hearing, said that although this overseas company should work under the government’s guidelines, it doesn’t have to comply with SEC requests entirely. Once this pre-trial hearing is completed, both parties will work on the primary proceeding with the lawsuit of $1.3 billion.
The ruling isn’t entirely in Ripple’s favor
In 2018, under the former Director William Hinman, SEC stressed that Ethereum and Bitcoin aren’t securities. Hinman then had to draw attention to the decentralization of the network to make them determine. So with the discovery of documentation, Ripple is hoping to find why XRP is singled out.
SEC Foul cry over XRP Holders Intervention
The SEC, in its separate motion, is working to prevent XRP holders from intervening in the case. John Deaton had put forth his argument saying XRP holders have lost as the SEC has filed legal action on Ripple. This contradicts the public statement by the SEC preventing harming investors. Meanwhile, in its response, Ripple said that XRP Holders (Movants) should be given full rights to intervene in this case.