Ripple gets access to Binance files in proceedings against the SEC. The documents could provide vital evidence that CEO Brad Garlinghouse acted outside the jurisdiction of the Securities and Exchange Commission.
The legal battle between fintech company Ripple and the US regulator Securities and Exchange Commission The SEC took another exciting turn this week. US Judge Sarah Netbourne has granted Ripple CEO Brad Garlinghouse’s request for an “international disclosure” of Binance’s records. Previously, the legal team representing Garlinghouse had requested documents from Binance Holdings Limited that were “relevant to the case and could not be obtained in any other way.”
Binance Holdings Limited is a Cayman Islands-based subsidiary that operates the major cryptocurrency exchange, Binance. Submitting a disclosure request with a foreign company is a smart move by the CEO of Ripple Garlinghouse. The records must prove the XRP transactions he made. He wants to provide evidence that these transactions occurred outside the SEC’s jurisdiction.
As a reminder, as part of the trial against Ripple, the SEC claims that the company sold $1.3 billion worth of tokens that were not classified as collateral. In addition, Garlinghouse’s private XRP sales of 357 million tokens are up for discussion. The filing now cites US State Department laws and even the Hague Convention. The court has been asked to issue a request to the Cayman Central Authority for evidence from Binance. according to Request He made this request to Judge Netbourne.
Ripple has recently had similar partial success
Ripple’s lawyers argue that the securities law consulted by the Securities and Exchange Commission applies only to domestic sales and stock offerings. However, Garlinghouse’s XRP sales were “mostly on digital asset trading platforms outside the United States.” Therefore, they are not even subject to the law that the SEC relies on in this case.
In June, Garlinghouse and his former partner Brad Larsen made a similar proposal. In it, they asked international authorities to examine documents from several other cryptocurrency exchanges located outside the United States. These include Bitstamp, Huobi, and Upbit.
Recently there was already another positive decision on the part of Judge Netburn. The goal was to call a former SEC official as a witness. At the time, it did not explicitly specify Ethereum as collateral. Ripple is trying to apply this assessment to the XRP token as well. Ripple also argues that the Securities and Exchange Commission (SEC) cannot regulate XRP as collateral because it is a medium of exchange for international and domestic transactions.