On Tuesday, US federal judge Analisa Torres rejected the US Securities and Exchange Commission’s (SEC) motion to seal internal documents related to a speech given by the SEC’s former director William Hinman about whether or not cryptocurrencies such as XRP are securities. The decision was seen as a win for Ripple Labs Inc., which was charged by the SEC for selling XRP tokens as an unregistered security. Torres ruled that sealing the Hinman speech documents would not be related to preserving openness and candor within the agency.
The SEC filed a lawsuit against Ripple in December 2020, alleging that its sale of XRP was an unregistered securities offering. The regulator also named Ripple’s executive chairman, Chris Larsen, and chief executive officer, Brad Garlinghouse, as co-defendants for allegedly aiding and abetting the company’s violations. The legal battle between Ripple and the SEC could set a precedent for how US authorities classify cryptocurrencies.
Hinman, a former director of the SEC’s Division of Corporation Finance, said in a speech in June 2018 that sales of Ether were not securities transactions. The speech has become a major point of argument between the SEC and Ripple as the latter seeks to bolster its fair notice defense. The decision by Torres to reject the SEC’s motion to seal the Hinman speech documents is a positive development for Ripple, as it strengthens the company’s fair notice defense argument against the SEC’s allegations.
XRP gained 8% in the past 24 hours to trade at US$0.4561 at 10:30 a.m. in Hong Kong, according to data from CoinMarketCap, following the judge’s decision. This marks a positive turn for Ripple and its supporters, as the legal battle with the SEC has weighed heavily on the price and reputation of XRP.
The latest court decision follows a September 2022 court ruling requiring the SEC to give the Hinman speech documents to Ripple, with the documents remaining confidential. This ruling was a victory for Ripple, as the company had been seeking access to the documents in order to build its defense against the SEC’s allegations.
In response to the Tuesday court ruling, Garlinghouse tweeted on Wednesday that it was “another win for transparency” and that unredacted Hinman emails would be “publicly available soon.” This is a positive development for Ripple, as it increases transparency and could help to dispel some of the negative sentiment about the company and XRP.
While the judge allowed the names and relevant identifying information of the SEC’s experts and investor declarants to be sealed, she denied Ripple’s motion to seal references related to the company’s revenues with XRP sales and certain financial information linked to the token. This suggests that the judge is keen to maintain transparency around the financial activities of Ripple and XRP.
The SEC’s lawsuit against Ripple has been closely watched by the cryptocurrency industry, as it could set a precedent for how US authorities classify cryptocurrencies in the future. The decision by Torres to reject the SEC’s motion to seal the Hinman speech documents is likely to be seen as a positive development for advocates of cryptocurrencies and blockchain technology, who have long argued that regulation should be clear and transparent.
In conclusion, the decision by US federal judge Analisa Torres to reject the SEC’s motion to seal internal documents related to William Hinman’s speech about cryptocurrencies and securities is a positive development for Ripple and its supporters. This decision increases transparency around Ripple’s activities and strengthens the company’s fair notice defense against the SEC’s allegations. The decision could also have wider implications for how US authorities classify cryptocurrencies in the future, and underscores the importance of clear and transparent regulation in the cryptocurrency industry.
