The high-profile Ripple vs. SEC court hearing has stalled. The agency has decided to defy the court’s orders by filing another motion not to turn over documents important to the proceedings. Between the lines, the SEC points to the incompetence of the judge.
Stubborn stance from the SEC
The U.S. Securities and Exchange Commission, has once again filed a motion opposing the court’s orders. The document, dated Tuesday, August 16, says that Judge Netburn “did not understand the law.”
Recall that the issue raised here concerns the transfer to the court, as well as to Ripple for review, of official emails and opinions once issued by one of the agency’s key employees. We are referring to the former director of the SEC’s Department of Corporation Finance, Bill Hinman.
According to the agency, this commitment cannot be fulfilled, based on the premise of two errors – factual and legal. As the document reads:
“This position is based on two false dichotomies, which Defendants continue to defend: the first, that agency communications can only reflect personal views or the views of the agency; and the second stating that the DPP and attorney-client privilege only protects considerations of specific agency decisions, not considerations that reflect the personal views of agency employees.”
The document also goes on to read the following:
“Since the orders contain clear factual errors and are contrary to law, the Court should uphold the SEC’s objections.”
A signal for a settlement?
The current filing, so far, is the third that the SEC can boast. The previous two Judge Netburn managed to reject. That doesn’t stop the agency, however, from filing more.
The case is being looked at by attorney John Deaton, who notes that:
“These emails, these comments will never see the light of day outside the SEC’s office. If the SEC is forced to turn over these documents, then there could be a settlement.”
Could it be, then, that the SEC is about to soften its stance, given its reluctance to declassify Hinman’s documents? This kind of hypothesis may find justification.
It is well known that the XRP token itself is mainly focused around information coming out of the courtroom. As time passes, however, they have less and less impact on the price action. It is likely that investors are waiting for rumors about the final settlement. In the absence of these, movements on the chart appear to be very flattened. We are currently observing a narrow upward channel, inside of which a prop is potentially forming. The bearish divergence has still not been played out with declines. The MACD, on the other hand, shows no clear momentum, suggesting movement in either direction.