There has been a new development for the Ripple case. A US judge dismissed allegations of attorney-client privilege regarding internal documents related to the “Hinman speech”. Thus, the US Securities and Exchange Commission (SEC) took a hit in its case against Ripple. Here are the details…
Ripple lawsuit: Positive development for the blockchain company
US Magistrate Sarah Netburn rejected the motion on July 12. She stated that she did not approve of the SEC’s defense that the speech was a personal matter for Hinman. She also argued that the commission should be protected because it received legal advice from the SEC to approve its policies. cryptocoin.com As we have also reported, Hinman’s speech suggested that ETH is not a security. Hinman is a former SEC official.
They tell the court that the conversation is not about the market’s understanding of how or how the SEC will regulate cryptocurrency. In drafting his speech, the SEC’s commitment to the law was not out of the question; argues that he has adopted litigation positions to further his desired cause. The draft of the Hinman speech, which the SEC fought to keep secret, was seen by many in the XRP community as an important piece of evidence that could work in favor of Ripple Labs.
The SEC sued blockchain firm Ripple in late 2020 over allegations that senior executives Brad Garlinghouse and Christian Larsen were selling Ripple’s XRP tokens as unregistered securities. However, Ripple said in a 2018 speech by Bill Hinman, former head of the Corporate Finance Division, that Ethereum (ETH) does not constitute “securities transactions.” Namely, he claimed it contradicted the SEC’s stance on the matter. Preventing further appeals or delays, the decision states that “Documents must be submitted”.
“Tactical victory” for Ripple
Delphi Digital’s general counsel, Gabriel Shapiro, described it as a “huge tactical win for Ripple” in his July 12 tweet. Some believe the SEC’s appeal is likely. John E Deaton, the founder of crypto news outlet Crypto-Law, told his 205,000 followers on July 12 that the objection would come within 30 days, along with Ripple’s objection. He also believes that the appellate judge will stand by Judge Netburn’s final decision. The SEC continues to insist that Hinman’s speech was a “purely personal affair”, not intended to provide legal advice.
Judge Netburn agreed that this could potentially protect drafts if Hinman were a private citizen. However, Judge Netburn wrote that the commission also argued that Hinman would not have access to information and resources if he was not currently working with the SEC. He could only solicit edits and feedback in the context of his work.
