The Court has ordered the Securities and Exchange Commission (SEC) to hand in documents about the former Division Director’s speech, William Hinman. The development comes after U.S. District Judge Analisa Torres overruled the SEC’s attempt to withhold documents on Hinman’s speech.
“Just in: U.S. Judge overrules and orders SEC to turn over Hinman documents in the #Ripple case.”
A Recap of the Ripple vs. SEC Lawsuit
In December 2020, the SEC filed a lawsuit against Ripple Labs, its CEO Brad Garlinghouse and former Ripple CEO Chris Larsen on claims that XRP was initially issued as security. The regulator supported the claim that the San Francisco-based blockchain company used XRP to raise funds in 2013.
At the start, the regulator had barred the disclosure of the said documents on the grounds of attorney-client privilege. According to case reports, the documents in question pertain to Hinman’s speech during a 2018 summit. The official reportedly said that he viewed cryptos such as Bitcoin (BTC) and Ethereum (ETH) as securities.
Noteworthy, District Court Judge Sarah Netburn had ruled that the email and drafts of the speech were not covered under privileges of “deliberative process.” Hinman’s speech has been a significant part of Ripple’s evidence against the SEC, where the regulator accused Ripple Company of infringing securities laws in issuing XRP tokens.
The Court Overrules the SEC’s Objection
Judge Torres’s ruling during the latest proceedings appeared to uphold Judge Netburns ruling and issued an order compelling the regulator to release the documents. In her ruling, Judge Torres notes that Judge Netburn was accurate in her decision that emails and drafts were not privileged information.
“The Court has reviewed the remainder of the thorough and well-reasoned Orders for clear error and finds none. Accordingly, the Court OVERRULES the SEC’s objections and directs the SEC to comply with the Orders.”
According to documents shared by James Finland, a Federal prosecutor and Ripple proponent, the Court ruled:
“The court finds that Judge Netburn did not err in determining that the Internal Speech Documents relate to the communication of Hinman’s own opinions to decide whether the DPP applies in making factual determinations about the Internal Speech Documents’ contents.”
With the new ruling, Ripple is set to go “full send mode” on $XRP, and the “XRP Army” on Twitter cannot hold their excitement. I-Remit, Inc., a global payment remittance firm, stands in solidarity with Ripple. The company uses RippleNet software and has filed an ‘amicus brief’ to support Ripple Defendants’ Motion for Summary Judgment. This is submitted to the Court for a case under review and shows the Court that its final decision will impact more people beyond the plaintiff and defendant.
XRP reacts with a Nearly 10% Price Pump
The Ripple-SEC case challenges the traditional court cases that close with a settlement. Instead, the issue is headed for a precedent ruling that many believe will help shape the industry. Over the past month, XRP has recorded a bull run following the developments on the case. It has rallied by 47% in the last two weeks, securing a place among the top ten largest cryptocurrencies by market capitalization.
At press time, the XRP price is $0.473 on CoinGecko, with indicators showing signs of expected gains. The Relative Strength Index (RSI) is at 64.61, indicating increased buying pressure. The Moving Average Convergence Divergence (MACD) line is above the signal line, meaning that the market has turned bullish in favor of the upside.