Ripple Claims First Winning Against SEC

• Defense lawyer James Filan won the attorney-client privilege argument.
•  SEC regulator only has two weeks to submit the appeal.

The Securities and Exchange Commission (SEC) took a hit in its case against Ripple, a U.S. judge Sarah Netburn rejected the SEC’s claims for attorney-client privilege regarding internal files relating to the Hinman statement.

The SEC attempted to rely on the attorney-client privilege to safeguard internal records related to the controversial Ethereum speech delivered by former high-ranking official William Hinman.

United States Magistrate Judge Sarah Netburn stated that;

I find that the documents did not have the predominant purpose of soliciting or providing legal advice. Privileged legal advice must be intended “to guide future conduct or to assess past conduct.

Magistrate Judge Decision

Following a recent decision by Judge Sarah Netburn, the legal fight between the US SEC and blockchain company, Ripple, took a new turn overnight by defense lawyer James Filan. Judge Netburn has rejected SEC’s arguments to shield the document about William Hinman’s speech under the client-attorney privilege and it was made public.

The court decided that getting information from outside sources did not register as a protected action. The SEC is required to submit two redaction alternatives for the court’s consideration in compliance with the decision issued by the court on April 11, 2022. It is significant to mention that the SEC may still appeal this decision, and the regulator only has two weeks to submit the appeal.

The judge has blasted the securities regulator with “hypocrisy” for claiming that the statement does not affect cryptocurrency regulation while also claiming that Hinman seeks legal help from the SEC.

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