The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) entered a new phase recently with the unsealing of a document by former SEC Director William H. Hinman. This document has been a point of contention throughout the lawsuit, and its release has shed new light on the case. Additionally, there are suspicions that Ethereum co-founder Vitalik Buterin may have influenced Hinman’s position.
The lawsuit against Ripple Labs was filed by the SEC in December 2020 and is still ongoing. One of the key issues in the case has been the release of Hinman’s 2018 speech, which many believe could have a significant impact on the outcome of the lawsuit. Despite the SEC’s attempts to seal the document, Judge Analisa Torres instructed the Commission to make it available to the public, ruling that it was not protected by deliberative process privilege.
On June 13, the internal document related to Hinman’s speech was finally released. In this speech, given at the Yahoo Finance All Markets Summit: Crypto in 2018, Hinman stated that a cryptocurrency may no longer be considered a security if its network is fully decentralized. Interestingly, he specifically mentioned Bitcoin and Ethereum as examples of assets that meet this criteria.
This statement has proven to be a significant problem for the SEC in the court case. The recently released document, which shows edits of the speech, suggests that the editors were concerned that Hinman’s statement could undermine the argument that Ethereum is a security. The edits read, “Even with the caveats in the sentence, it seems that it would be difficult for the agency to take a different position on Ether in the future.”
Many Ripple advocates and pro attorneys believe that the unsealing of the document could be critical to the legal status of XRP. Ripple Labs CEO Brad Garlinghouse expressed his satisfaction with the release of the document, stating that they had been waiting for this moment for over 18 months and that it was worth the wait.
Furthermore, there are suspicions that Hinman’s position may have been influenced by Vitalik Buterin. Ripple’s Chief Legal Officer, Stuart Alderoty, pointed out instances where the SEC’s Head of Trading and Office of General Counsel ignored feedback, suggesting that an investigation should be conducted to understand what or who influenced Hinman’s thinking. The unsealed document also revealed that Buterin had a call with Hinman, raising concerns about the impartiality of Hinman’s stance on Ethereum.
These revelations have sparked a debate about whether Hinman’s speech represents his personal opinion or the official stance of the SEC. Ripple supporters have compared the situation to someone being accused of murder and only calling the suspect to ask questions and make a judgment based on their answers. They argue that there should be a more thorough investigation into the possible influence on Hinman’s decision.
In conclusion, the unsealing of William H. Hinman’s document has added a new dimension to the ongoing legal battle between Ripple Labs and the SEC. The contents of the document, as well as suspicions of influence from Vitalik Buterin, have raised questions about the impartiality of Hinman’s stance on Ethereum and could have significant implications for the outcome of the lawsuit. As the case continues, the cryptocurrency community eagerly awaits further developments that could shape the regulatory landscape for digital assets.
