The attorneys representing Ripple (XRP), CEO Brad Garlinghouse and former CEO Chris Larsen believe the Securities and Exchange Commission (SEC) is out of line. This can be read in a letter to the judge in the case published yesterday.
Ripple is currently in lawsuit with the US SEC. The company, its CEO and former CEO are accused by the SEC of illegal sale of securities with XRP. The lawsuit caused a huge blow to the XRP price at the end of last year after many crypto exchanges decided to remove XRP.
In the recent letter, lawyers for the three parties talked about the SEC using a “harassment tactic”. This tactic would include approaching foreign regulators to request financial information about the three. This could deter business associates from Ripple:
“In the process set forth in the Memoranda of Understanding, a foreign securities regulator is involved in the discovery process, which has a significant impact on the recipient of the requests, including Ripple’s foreign business partners, and amounts to unwarranted intimidation tactic,”
The SEC has tried to request data from 67 third parties, according to the lawyers. This includes the regulators of Singapore, Japan and the United Kingdom. The lawyers explain:
“This has had a significantly adverse effect on Ripple’s commercial and business activities with partners in those jurisdictions who have received requests from foreign regulators regarding this action,”
The lawyers are now asking the judge to force the SEC to stop and stop asking foreign regulators for information.
Ripple has had some minor wins in recent weeks with motions that were rejected and approved. This gave the XRP price a positive stimulus. But maybe XRP investors are cheering a little early?