- In the legal battle between Ripple and the SEC, District Judge Analisa Torres recently denied the SEC’s motion to seal records concerning a 2018 speech by former SEC Division Director William Hinman. In the speech, Hinman stated that Bitcoin and Ethereum were not securities.
- The Hinman speech has been a key part of Ripple’s defense, arguing that XRP should also not be considered a security. The SEC had sought to seal internal communications following the speech.
- Following the news of the ruling, XRP’s price jumped approximately 2.6%.
In the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC), the blockchain company has recently notched up a significant win. The crux of the conflict lies in the SEC’s claim that Ripple’s XRP token was sold illegally, as it wasn’t registered as a security. However, a recent court ruling has added a new twist to this high-stakes saga.
District Judge Analisa Torres denied the SEC’s motion to seal records relating to a 2018 speech by former SEC Division Director William Hinman. In that speech, Hinman stated that Bitcoin and Ethereum were not securities, sparking a debate that’s become central to the Ripple-SEC dispute. Denying the SEC’s motion to seal these documents is a noteworthy development, as it potentially bolsters Ripple’s defense.
The Hinman Speech: A Beacon of Hope for Ripple
The Hinman speech has been a cornerstone of Ripple’s defense strategy, as the former SEC director’s comments provided a precedent that some cryptocurrencies, specifically Bitcoin and Ethereum, are not deemed securities. Ripple asserts that XRP should be viewed in the same light.
The SEC sought to seal internal communications following Hinman’s speech, arguing that its mission superseded the public’s right to access what it deemed irrelevant documents. However, Judge Torres rejected this argument, ruling these documents as “judicial documents” subject to public scrutiny. She further noted that the deliberative process privilege did not protect the Hinman speech documents as they did not correlate to an agency position, decision, or policy.
Ripple CEO Brad Garlinghouse celebrated this ruling as “another win for transparency,” indicating that the unredacted Hinman emails would be made publicly available soon.
The Market Responds: XRP Price Leaps
The market’s response to this courtroom drama was swift, with XRP’s price jumping approximately 2.6% on the news. Despite the ongoing legal battle and the general volatility of the cryptocurrency market, XRP has shown resilience. This resilience hints at potential future gains, especially if Ripple’s arguments continue to hold sway in court.
This recent development in the Ripple vs. SEC saga sends a potent signal about the value of transparency and public access in the largely unregulated cryptocurrency landscape. As the legal battle unfolds, the Hinman speech and the documents surrounding it could play a crucial role in shaping the future of Ripple, XRP, and potentially the broader regulatory environment for cryptocurrencies.
