Ripple Obtains Vital Hinman’s Internal Documents From the SEC

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Blockchain Crypto Regulation
Ripple Obtains Vital Hinman’s Internal Documents From the SEC

Ripple seems to be taking the lead in the on-going court case with the Securities and Exchange Commission (SEC).

Ripple Accesses Hinman Documents

However, they just got a veritable treasure trove of email messages & other indicting documents from the SEC. Recall that for 18 months now, Ripple has been on the defensive side over an assertion that it illegally sold XRP.

Stuart Alderoty, Ripple’s General Counsel, broke the news on Twitter on Thursday, 20th October. 

He said:

” Over 18 months and 6 court orders later, we finally have the Hinman docs (internal SEC emails and drafts of his infamous 2018 speech). While they remain confidential for now (at the SEC’s insistence), I can say that it was well worth the fight to get them.”

This document shows its origin from the former SEC director, William Hinman, and his 2018 speech in which he declared the duo, Bitcoin & Ethereum, as the only truly decentralized asset that requires no scrutiny from the SEC. 

His remarks were the major catalysts that facilitated the current debates on crypto regulations and the 2020 December lawsuit against Ripple.

If all goes well, these latest revelations might be one of the biggest discoveries in the crypto space.

Ripple Was Denied Access Repeatedly to The Document

In the build-up to the current developments, recall that the federal district judge sometimes in September overruled SEC’s repeated attempts at preventing Ripple from gaining access to the documents containing the various deliberations and discussions that went into the controversial declaration of XRP as an unregistered security. 

The obvious prevailing narrative is that SEC seems to favor the duo of Bitcoin & Ethereum at the expense of XRP. 

Ripple had always wanted to access these documents, and they got that right in January. However, some key industry watchers felt that the documents wouldn’t help much in the case.

According to Ripple’s defense counsel Alderoty, these assumptions are wrong. He said,

“While they remain confidential for now (at the SEC’s insistence), I can say that it was well worth the fight to get them.”

Ripple’s Boss Slammed SEC

Ripple just celebrated its 10th anniversary, and its boss Brad Garlinghouse expressed his displeasure with the latest revelations from the released documents. 

“The SEC’s pursuit of a policy objective isn’t about ‘a faithful allegiance to the law’—it’s about power,” he wrote.

He further slammed the SEC & registered his dissatisfaction with their stands regarding disclosure, transparency, and clarity. 

“The SEC wants you to think that it cares about disclosure, transparency and clarity. Don’t believe them. When the truth eventually comes out, the shamefulness of their behavior here will shock you.”

What Will Be The Outcome Of This Development?

Although there is every possibility that all this might be subjected to Hinman’s insight, it is not necessarily the position of the SEC as an organization.

The General Counsel is hoping he gets an opportunity to hear directly from Hinman. 

There is every indication that this latest development might just rekindle another round of legal battles between SEC & Ripple. The SEC recently demanded a summary judgment that Ripple vehemently opposed because SEC still has not provided a viable legal theory to support its stand against XRP. 

Gary Gensler, the chairman of the SEC, has not made any public statement on the latest developments.

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