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Pro-XRP Lawyer Says Release of Highly Anticipated Hinman Emails Won’t Affect Outcome in SEC’s Ripple Lawsuit

Pro-XRP Lawyer Says Release of Highly Anticipated Hinman Emails Won’t Affect Outcome in SEC’s Ripple Lawsuit

John Deaton, a pro-XRP lawyer, is skeptical that the unsealing of documents by former U.S. Securities and Exchange Commission (SEC) official William Hinman will affect the SEC’s lawsuit against Ripple. Deaton says in a new Wolf of All Streets interview that the unsealing of the Hinman documents is immaterial to the lawsuit’s outcome. “There’s nothing […]

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Ripple’s Legal Counsel Calls for Investigation into Former SEC Official William Hinman After Release of Emails

Ripple’s Legal Counsel Calls for Investigation into Former SEC Official William Hinman After Release of Emails

Ripple Labs’ head legal counsel says there should be an investigation into the U.S. Securities and Exchange Commission’s (SEC) former Director of Corporation Finance following the reveal of internal emails. In 2018, William Hinman made a speech declaring Ethereum (ETH) as not a security, which caused confusion when the SEC later sued Ripple Labs for […]

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Ripple vs. SEC: Could newly released documents tip the balance?

The court case between SEC and Ripple Labs has been ongoing for nearly two and a half years, but a summary judgment ruling could be made any day.

The ongoing case of the Securities and Exchange Commission v Ripple Labs could have a significant impact on the future of cryptocurrency regulations. 

Ripple first popped up in 2012 with the promise of providing financial institutions and other entities with faster, more affordable clearance of cross-border fund transfers. To that end, Ripple created the XRP Ledger and a cryptocurrency called XRP (XRP) to function as its native coin and facilitate transactions.

On Dec. 22, 2020, the SEC sued Ripple, alleging that the firm selling XRP represented an unregistered securities offering.

Ripple co-founder and former CEO Chris Larsen and current CEO Brad Garlinghouse were also named in the SEC’s charges.

Most entities on the receiving end of SEC enforcement actions choose to settle. In this case, however, Ripple chose to fight the charges — at great expense — and take the matter to court.

Ripple argued that XRP does not satisfy the Howey test, which is used to determine whether an investment contract exists  — and, therefore, whether a transaction is a security transaction. It also said that if XRP was, in fact, a security, the SEC had failed to give it fair notice under U.S. securities laws.

Enter the Hinman documents

The “Hinman documents” refer to a 2018 speech given by former SEC Director William Hinman and documents associated with writing it.

In the speech, Hinman said that Ether (ETH) should not be considered a security given its decentralized nature, stating:

“Putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.”

This was considered a landmark speech, as it signaled to the crypto industry that it could be possible for cryptocurrencies to transition from securities when they are first created to commodities once they are sufficiently decentralized.

This could have an impact on Ripple’s fair notice defense, which comes into play if Judge Analisa Torres finds that Ripple did indeed sell unregistered securities.

Ripple requested the documents in discovery, and the request was granted on Oct. 21, 2022. While the documents could be used as a part of Ripple’s defense, the SEC has attempted to keep them sealed on multiple occasions, arguing that they are irrelevant to the court’s summary judgment decision.

But on May 16, Judge Torres ruled that the Hinman documents are “judicial documents” subject to a strong presumption of public access and denied the SEC’s motion to seal.

Notably, the court did not state whether the documents will be relied upon when it decides on the summary judgment motions of each party; but given the statements of those who have seen the documents, it appears likely they will negatively affect the public image of the SEC.

Additionally, there are questions about whether Hinman had a conflict of interest when making the speech, as he worked at a law firm that is a member of an Ethereum advocacy organization before and after working for the SEC— and the documents may provide additional details around this.

Speaking during a Twitter Space shortly after the ruling, lawyer and CryptoLaw founder John Deaton predicted the documents will be:

“Disturbing, but not as shocking as maybe people think it’s going to be because there’s been, quite frankly, such a big buildup for it. [...] I believe when these emails come out, that the conflicts of interest will be even more highlighted.”

What does the latest ruling mean for the case?

While it’s still too early to tell what the ultimate outcome of the case will be, the court also denied certain motions to seal from Ripple, which included references linking Ripple’s revenues with XRP sales and the amount of compensation offered to trading platforms, among others.

In the Twitter Space, Deaton highlighted these sections as evidence likely to hurt Ripple’s chances of a complete victory, adding:

“I think the chances of Ripple getting a complete victory are much slimmer after reading this than I felt before. I still don’t think the SEC is getting a complete victory either.”

Deaton theorized that the courts could decide to fine Ripple for its early sales of XRP — relating to the initial coin offering and other transactions aimed at boosting the network — but that secondary sales of XRP and the coin itself are not securities.

Deaton’s thoughts on the subject were given further credibility when former SEC securities lawyer Marc Fagel added his voice to the Twitter Space, saying that he generally agreed with everything that had been said but that the SEC’s suit was worded in a way that focused on the tokens issued by Ripple and not secondary market transactions.

Fagel added that he thought Torres “would be overstepping to make a ruling on secondary sales,” but he believed they were helpful in the SEC’s case, as they illustrate how a secondary market would not have been created without Ripple issuing securities while promoting the network.

Could the case finally be reaching its conclusion?

In a May 17 Twitter thread, prominent pro-crypto lawyer Fred Rispoli suggested that the summary judgment ruling is already written and could be issued “any day now,” while also agreeing that a split decision was the most likely.

Deaton noted during the Twitter Space that he believes Judge Torres knows how she will rule but added that guessing how much is written “in its final form” would be pure speculation.

He also agreed that the decision could come down at any time, but he added that it could take another month or longer.

Magazine: NFT Creator: Top 10 crypto artist Trevor Jones on being rich, rekt and rich again

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XRP vs. SEC Lawsuit: Policy Expert Pushes Back on Regulator’s Attempt To Keep Crucial Documents Sealed

XRP vs. SEC Lawsuit: Policy Expert Pushes Back on Regulator’s Attempt To Keep Crucial Documents Sealed

A journalist is arguing to have critical documents released in the contentious legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). Forbes senior contributor Roslyn Layton, represented by her attorney J. Carl Cecere, filed a motion with District Judge Analisa Torres to release the Hinman files to the public. The SEC […]

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SEC seeks to keep Hinman documents hidden in Ripple case

SEC’s request to seal documents in the Ripple Labs case has sparked criticism from the community.

The United States Securities and Exchange Commission (SEC) has requested to seal the infamous Hinman Speech documents, claiming that they are not relevant to the court’s summary judgment decision.

The Motion to Seal Summary Judgment Document was filed by the SEC on Dec. 22, requesting the sealing of various information and documents, most notably the Hinman Speech documents.

The Hinman Speech documents refer to the speech given by former SEC Corporation Finance Division Director William Hinman at the Yahoo Finance All Markets Summit in June 2018, where he reportedly stated that Ether (ETH), the native token of the Ethereum blockchain, is not a security.

Ripple believes it is a vital piece of evidence to help them with its case against the U.S. regulator.

In its latest motion, the SEC said its mission outweighs the “public’s right” to access documents that have “no relevance” to the Court’s summary judgment decision.

It also requested that any references to the Hinman Speech Documents be “redacted” from the papers of the defendants.

The SEC’s request has sparked criticism from the crypto community, with one user suggesting that the SEC chairman Gary Gensler has a hidden agenda:

The document also requested to seal information relating to the SEC’s expert witnesses and XRP investors that submitted declarations, as well as internal SEC documents reflecting debate and deliberation by SEC officials.

It comes only weeks after Ripple Labs filed its final submission against SEC on Dec. 2, meaning the two-year legal battle may soon come to an end. 

Related: SEC can’t confirm if video of Bill Hinman is actually Bill Hinman in Ripple case

Ripple had confirmed on Oct. 21 that it had access to the Hinman Speech Documents after 18 months and six court orders, though the documents still remained confidential at the SEC’s insistence.

The SEC was previously denied by the courts to keep Hinman documents a secret, with the U.S. judge calling out the SEC’s hypocrisy for doing so.

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Ripple files final submission against SEC as landmark case nears end

The two-year-long battle between SEC and Ripple is approaching the end, with Ripple filing its final submission in its case against the US regulator on Dec. 2.

The most talked about crypto lawsuit involving the United States Securities and Exchange Commission (SEC) and Ripple is approaching its conclusion after a two-year-long battle.

On Dec. 2 the SEC and Ripple both filed redacted replies to each other’s opposition to motions for summary judgment.

Ripple argued in its motion document that the SEC has failed to prove that its offering of XRP between 2013 and 2020 was an offer or sale of an “investment contract” and therefore a security under federal security laws.

Ripple concluded the document by stating that “the court should grant Defendant’s Motion and should deny the SEC’s Motion.”

Stuart Alderoty, General Counsel of Ripple stated on Twitter on Dec. 3 that this is Ripple’s “final submission,” asking the court to “grant” judgment in its favor.

He also stated that Ripple is proud of the defense it has mounted on “behalf of the entire crypto industry,” noting that Ripple has “always played it straight with the court,’ taking a subtle swing at the SEC saying he “can’t say the same for our adversary.”

In another Twitter post, Alderoty continued to slam the SEC on Dec. 5 referred to it as a “bouncing regulator,” quoting two statements that he suggests are at ends with each other.

The ongoing legal dispute between SEC and Ripple began in December 2020 when the SEC initiated legal action against Ripple claiming it had raised $1.3 billion by offering Ripple’s native cryptocurrency XRP as unregistered securities.

Related: Investors increasingly confident of Ripple’s victory over SEC: CoinShares

In an earlier Nov. 30 Twitter thread, former federal prosecutor James Filan said there are just three issues left to resolve in the SEC vs Ripple case.

This includes the summary judgment motions, expert challenges and sealing issues regarding the “expert reports,” the Hinman documents and other material relied on by the SEC and Ripple in their motions.

The Hinman documents refer to the speech that William Hinman delivered at the Yahoo Finance All Markets Summit in June 2018, where he stated that Ether (ETH) was not a security.

Filan believes that Judge Torres won’t tackle the three big issues “separately,” instead she will” decide on everything together, and once she rules on the motions for summary judgment, “one big written ruling” will be released — likely “on or before March 31st, 2023.”

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Ripple vs. SEC: Crypto Legal Expert Breaks Down Upcoming Ruling in XRP Lawsuit

Ripple vs. SEC: Crypto Legal Expert Breaks Down Upcoming Ruling in XRP Lawsuit

A legal expert is weighing in on how the judge in the legal battle between U.S. Securities and Exchange Commission (SEC) and Ripple Labs will likely proceed. Crypto attorney James K. Filan says he expects US District Judge Analisa Torres to decide which documents to unseal in the case when making a summary judgment, not […]

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SEC Doubles Down on Bid Blocking Ripple From Obtaining Evidence in XRP Lawsuit

SEC Doubles Down on Bid Blocking Ripple From Obtaining Evidence in XRP Lawsuit

The U.S. Securities and Exchange Commission (SEC) is doubling down on its bid to block Ripple Labs from obtaining critical evidence in the lawsuit filed against the payments firm alleging they sold XRP as an unregistered security. In a recent court filing, the SEC says that it is offering more support to its earlier objection […]

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Judge Losing Patience in Ripple and XRP Lawsuit As SEC Changes Its Story Too Many Times: Crypto Legal Expert

Judge Losing Patience in Ripple and XRP Lawsuit As SEC Changes Its Story Too Many Times: Crypto Legal Expert

A crypto legal expert says that the Judge in the U.S. Securities and Exchange Commission’s (SEC) case against Ripple Labs is losing patience with the regulatory agency for flip-flopping on its story. In a new video update, attorney Jeremy Hogan, who has been closely following the case, says that Judge Sarah Netburn is getting tired […]

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Ripple Objects to SEC’s Latest Push To Block Crucial Evidence in XRP Lawsuit

Ripple Objects to SEC’s Latest Push To Block Crucial Evidence in XRP Lawsuit

The battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs grinds on as the SEC disputes a key judicial ruling. Crypto attorney James K. Filan, who has been chronicling the SEC versus Ripple case since December 2020, shares with his 106,700 Twitter followers a copy of an SEC request to block drafts […]

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