Attorney James Filan: SEC’s Recent One-Sentence Response to Ripple Is an Abuse of the Judicial Process

The SEC waited five days just to file a one-sentence response to Ripple’s request to serve subpoenas to two non-parties. 

The Securities and Exchange Commission has responded to Ripple and individual defendants’ request to serve subpoenas to two non-parties, to authenticate seven videos of SEC officials’ public remarks. 

The SEC described Ripple’s request as “a reopening of fact discovery,” adding that it takes no position on Defendant’s demands. 

Recall that on August 3, 2022, Ripple had requested permission to serve two video sharing platforms subpoenas to obtain seven video recordings of the commission’s officials, in which they made different public remarks. 

After waiting for five days, the commission chose to file a short response to the Defendants’ request, which reads: 

“Plaintiff Securities and Exchange Commission respectfully takes no position on Defendants’ motion to reopen fact discovery to serve non-party subpoenas for the purpose of obtaining video recordings for authentication.” 

#XRPCommunity #SECGov v. #Ripple #XRP The SEC has filed a one line response to the Ripple Defendants efforts to enforce Judge Netburn’s ruling on authentication of videos of SEC officials’ remarks. The SEC says it takes no position on Ripple’s request to reopen fact discovery. pic.twitter.com/AXU0XDYhSi

— James K. Filan ???? 108k (beware of imposters) (@FilanLaw) August 9, 2022

SEC Plans to Twist Ripple’s Request In Its Favor

It is noteworthy that Ripple stated that its request is not an effort to reopen fact discovery. The blockchain company and two of its executives noted that the subpoenas they wish to serve to the non-party relate to the Requests for Admission (RFA) served before the end of discovery. 

Understandably, the SEC wants to tag Ripple’s request as a “reopening of fact discovery” because it wishes to also reopen fact discovery. The commission is also planning to serve its subpoenas to obtain unidentified video recordings, which supports its claim that XRP is a security. 

“Specifically, the SEC has communicated to defendants that it would consent only if defendants agree to reopen discovery so that the SEC could now serve its own set of subpoenas to obtain copies of unspecified video recordings in support of its claims and only if defendants further agree to waive any authenticity and procedural objections to the unknown SEC videos,” Ripple said.  

However, Ripple has maintained that its request is not to reopen fact discovery, adding that it strongly objects to the SEC’s efforts to do the same. 

The blockchain company said that the subpoenas Ripple intends to serve do not pose an issue to the court’s timeline. 

Commenting on the development, attorney James K. Filan, a former U.S. federal prosecutor, slammed the SEC’s response as an abuse of the court’s judicial process and a waste of the court’s time.

“The SEC’s response is simply an abuse of the judicial process and a waste of the Court’s time, as evidenced by the fact that the SEC waited five days to file a one-sentence response in which the SEC then misconstrued Ripple’s original request.”

Parties Want Their Motion Sealed

Meanwhile, both the SEC and Ripple have jointly filed a request for a briefing scheduled for motions to seal portions of their response to each other’s motion to exclude expert testimony. 

The parties propose that all briefings and supporting documents regarding motions to exclude expert testimony should be filed under seal until Judge Analisa Torres sorts it out. 

#XRPCommunity #SECGov v. #Ripple #XRP The parties filed a request for a briefing schedule for motions to seal parts of their responses to each other’s motions to exclude expert testimony. This means everything will be filed and remain under seal until Judge Torres sorts it out. pic.twitter.com/Da6caG8cVU

— James K. Filan ???? 108k (beware of imposters) (@FilanLaw) August 8, 2022

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