- Ripple aims to bring a former SEC member to court to testify.
- That individual could be former SEC chair Jeff Clayton or another official who has left the SEC in recent months.
- Meanwhile, the SEC is attempting to block Ripple’s request.
Share this article
The legal case between the U.S. Securities and Exchange Commission and Ripple has seen a new development, as Ripple aims to depose a former SEC member and hear their testimony.
Ripple Wants to Question Ex-SEC Official
According to lawyer James Filan, Ripple’s deposition request aims to bring an ex-SEC member to court. He writes: “This means that Ripple wants to question, under oath (deposition), a former SEC official.”
Filan added that “we [the community] do not know who the former SEC official is yet.” However, several high profile members have left the SEC in recent months, and all are potential candidates.
One candidate is former SEC chair Jay Clayton, who was responsible initiating the case against Ripple last December. Given his involvement in the case, he seems to be the most likely candidate.
Other possibilities include William Hinman, Sagar Teotia, and Stephanie Avakian. Each individual left the SEC in the last several months. However, each has had minimal involvement in the case, and as such they are less likely subjects for deposition.
SEC Wants to Quash Request
Meranwhile, the SEC is attempting to quash Ripple’s request. Filan noted that the SEC “objects to the deposition.” He writes that Ripple and the SEC could not “work out their differences” and that they want Magistrate Judge Sarah Netburn to decide what will happen.
It is not clear what Ripple aims to accomplish by having a former SEC member testify in court. However, Ripple previously criticized the SEC for launching its legal case during the transition between the Trump administration and Biden administration.
Ripple CEO Brad Garlinghouse stated in April: “Jay Clayton… the day before he left office, brought this lawsuit against Ripple and against me personally…to do that the day before he leaves his position, I think it was misguided.”
If the former SEC member does not give testimony, Ripple’s complaints around the administrative changeover seem to be legitimate.
Other Case Developments
The SEC initially launched its lawsuit against Ripple in December 2020 when it claimed that the company’s sales of its XRP token constituted an unregistered securities offering.
More recently, SEC Commissioner Hester Peirce suggested that XRP “doesn’t necessarily have to be a security.” In her view, it is the underlying investment contract that is considered a security.
Meanwhile, Jeremy Hogan, a lawyer in the XRP community, has put forward a new estimate for the end of the case. He believes that the case could reach a summary judgment by early 2022.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins, and did not hold XRP.
Ripple Seeks XRP Transfer Data on Overseas Exchanges
The legal team representing Ripple executives has filed a motion aiming to collect in-depth data on XRP sales conducted on foreign crypto exchanges. This is the firm’s latest move in…
What is Polygon (MATIC): Ethereum’s Internet of Blockchains
In terms of both decentralized app (DApp) development and adoption, no blockchain has been more successful than Ethereum (ETH). But despite its relative success, the Ethereum network still contains several…
Ripple Claims SEC Misquoted It in Latest Development
As part of an ongoing lawsuit, Ripple has countered the SEC’s previous legal motions by filing a new legal memo. This memo claims that the SEC misquoted key parts of…