In the latest development from the SEC lawsuit with Ripple, Ripple Labs won over forcing the US Securities and Exchange Commission (SEC) to release documents related to the agency's internal discussions about cryptocurrency Bitcoin and Ethereum.
This latest ruling by US Court Judge Sarah Netburn could be a major legal development for Ripple as the company is trying to consolidate its right to protect "fair notice" in the ongoing lawsuit. .
A central issue in the lawsuit is whether transactions involving XRP - the native cryptocurrency for Ripple - will constitute an "investment contract" and therefore the security must be registered under Section 5 of the Act. stock year 1933 or not.
Ripple has alleged that the SEC incorrectly defines the term "investment contract", fails to provide "fair notice" that XRP transactions violate the law and - through the agency's earlier determination that Bitcoin and Ether are not securities - leading Ripple to believe XRP, too, should not be viewed as a security.
The SEC lawsuit against Ripple is currently in the stage of discovery, with both sides struggling over what information must be shared with the other.
In March, Ripple alleged that the SEC was "withholding relevant information, potentially justifiable false evidence" and filed a request for the SEC to present documents reflecting the SEC's previous statements, together with communications with third parties as well as documents that discuss internally whether XRP, Bitcoin or Ether are considered securities. According to Ripple, the SEC had previously argued that these documents were not relevant to the incident.
The lawsuit is currently closely watched by the XRP community and the crypto industry worldwide due to its potential impacts on XRP investors and the legal precedent it may set for other cryptocurrencies.
Despite legal troubles with the SEC in the United States over XRP, Ripple continues to push into the Southeast Asian market. Last month, the company announced that it had agreed to acquire a 40% stake in Asia's cross-border payments channel Tranglo as part of the expansion of the global payment network RippleNet.
The price of XRP has risen more than 80% in the past week, surpassing $ 1 on April 7, the highest level in three years. XRP is trading at $ 4 as of press time.