How the XRP community is responding to the SEC’s “shady” move

The Securities and Exchange Commission (SEC) lawsuit against Ripple Labs and executives Brad Garlinghouse and Chris Larsen appear to have taken a strange turn. According to former federal prosecutor and attorney James Filan, the Commission reportedly could have circumvented certain rules in its favor.

The SEC is apparently “seeking discovery” from the United Kingdom’s Financial Conduct Authority (FCA) about Ripple. This method is called Memoranda of Understanding (“MOU”) and, according to a document file with the Southern District of New York and Magistrate Judge Sarah Netburn, violates the Hague Convention.

The document was introduced by the legal representation of Ripple Labs and claims that the SEC has at least 11 MOU demanding documents from “overseas entities.” The document claims that “many” of these entities are the payment company’s business partners “and about 10 international regulators.

The defense qualifies the trial as “inappropriate” and as part of an “intimidation tactic” to allegedly diminish Ripple’s ability to do business outside of the US.

Not only is the use of pre-litigation investigative tools to the disadvantage of defendants and the recipients of such requests, as described below, it also prevents this Court from exercising its legitimate discretion as to the scope of permitted foreign discoveries.

SEC “Unfair” Advantage in XRP Case?

Commenting on the discovery, attorney Jeremy Hogan said the SEC is exerting indirect “regulatory pressure” on Ripple and its partners. Since the Commission is the only party that can apply this tactic Hogan said

This is NOT something a “typical” plaintiff could do and it is not fair, so Ripple shouts “dirty-poker” (…). (former prosecutor), this is a typical prosecutor who puts pressure not only on you, but also on your business friends.

Jesse Hynes, General Counsel for Gala Games, also gave his opinion, claiming it was an “insane” move by the regulator. Hynes stressed the importance and implications this lawsuit could have for the crypto industry as well said

Shame about the SEC! On the other hand, the SEC actually admits that this is an issue of great political and global significance. I can’t wait for that Judgment Summary motion with a doctrine argument with important questions.

XRP is trading at $ 1.64 with a correction of 8.9% after an impressive rally in recent days. On the weekly and monthly chart, XRP stands at 55.9% and 255.2% gain.

XRP with moderate losses on the 24-hour chart. Source: XRPUSDT Tradingview

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