Ripple Labshas been in its legal battle with the SEC for a long time. The SEC continues to lose power in its lawsuit, describing XRP as an ‘unregistered security’. The Ripple company, on the other hand, recently achieved a minor victory and accessed important documents.
After 18 months of struggle and six court orders, Ripple finally has access to the ‘Hinman documents’. The Hinman documents include the SEC’s internal drafts and speech that has been hidden for more than four years. In those conversations, Ethereum was not recognized as a ‘security’ by the SEC. This detail will strengthen Ripple’s hand.
Koinfinans.com According to the news we previously reported as SECWilliam Hinman, former Director of Corporate Finance Department, did not accept Ethereum as a security in a speech and email records.
Stuart Alderoty, Ripple’s general counsel, tweeted on the matter on Thursday. Documents related to the 2018 Yahoo Finance All Markets Summit speech remain confidential for now. The only detail known at the moment is the comment “It was worth the fight to get them” at the request of the editor.
Ripple Accessed Hinman Documents
Ripple has been requesting access to these documents for a long time. The detail that will strengthen the defense is shared as an intermediate victory. It will be on why XRP is accepted while ETH is not considered a security. This detail will definitely strengthen the hand of the company.
While Ripple has repeatedly requested documents through discovery, the SEC has tried to hide it at least three times. The SEC’s point of view was overruled by Magistrate Sarah Netburn in New York’s Southern District Court, first in February and then in April.
Judge Analisa Torres again ruled against the SEC’s third attempts to withhold documents late last month.
The price of XRP rose more than 9% on the news. XRP was last traded at $0.44, down 1.8% in a 24-hour period.
“I have always felt good about our legal arguments and now I feel even better. I’ve always felt bad about the SEC’s tactics, and now I feel even worse.”
Might Be a Turning Point
As the litigation continues, the outcome of the legal debate between the parties will have broader implications for the industry as crypto-assets can take precedence over how they are regulated and treated as a security or a commodity.
Since its lawsuit filed in 2020, the SEC has argued that Ripple and its two executives violated securities laws when former and current CEOs Brad Garlinghouse and Chris Larsen tried to raise funds without first registering in 2013.
Ripple, on the other hand, has repeatedly denied allegations that the regulator had raised more than $1.3 billion from an XRP token sale more than nine years ago.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.