The request made to the Magistrate court by Ripple's executives Brad Garlinghouse and Chris Larsen to stop the US Securities and Exchange Commission from seeking foreign assistance has been denied.

This is Ripple's first major rejection and setback in discovery fights since the Ripple SEC lawsuit began.

In a letter dated April 16, Garlinghouse and Larsen had filed for a motion to Judge Sarah Netburn through their lawyers asking that the court stop the SEC from obtaining documents from Ripple's overseas partners. This comes after the SEC sent out at least 11 Memorandum of Understanding (MOU) requests to foreign securities regulators.

Ripple alleged that the agency was only trying to intimidate Ripple's foreign partners into severing its ties with the company. In this vein, Ripple asked that the court prevent the SEC from conducting discovery outside its jurisdiction.

However, in a new court release, Judge Sarah Netburn has denied Ripple's motion to stop the SEC from getting further discovery overseas.

According to the Judge, there was no evidence to back up Ripple's claims of the agency intimidating its foreign partners. Netburn stated that the MoU requests are permissible, and the foreign securities regulators are obligated to either decline or agree to facilitate the requests.

Ripple has a strong foreign customer base. Roughly 95% of Ripple's customers are outside the US. This may have been one reason why the San Francisco-based company's partnerships seem to be increasing. So far, Ripple has signed more than 20 partnerships with financial institutions worldwide since the SEC lawsuit began.

Ever since the SEC sued Ripple in December, there have been several motions filed back to back. During this time, the blockchain company has had a few victories where motions were ruled in its favor.

In April, the judge granted Ripple's motion to compel the discovery of documents regarding XRP, Bitcoin, and Ethereum. Netburn clarified later that Ripple could not access the SEC staff's emails.

Ripple also had another victory when the court denied and blocked the SEC's requests to look into CEO Brad Garlinghouse and co-founder Chris Larsen's banking records.

Meanwhile, the SEC has made another objection to the John Deaton and XRP Holders motion to intervene as a third party in the lawsuit.

While the XRP holders have come out wanting to intervene in the case as third-party defendants, the regulatory agency has vigorously argued against the proposition, stating that the XRP holders won't provide any additional information and are likely to be partial to Ripple.

“Seeking to inject themselves as “third-party defendants” in this action, Movants would act as ‘friends’ of Defendants, not true ‘friends of the court,’ if permitted to participate as amici,” the SEC noted in a recent memorandum of law.

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