Ripple scores major win as Judge finds out if SEC lied to court

Rick Steves

Ripple found out about an email chain between the SEC and a third party that could prove Hinman’s 2018 speech was not merely a personal opinion, but the SEC’s policy. The Judge wants to take a look at it.

At the center of the debate is ex-SEC Director William Hinman, who gave a famous speech in 2018 stating Ethereum is not a security, which prompted the price of ETH to skyrocket.

Ripple’s legal team has recently detected descriptions from the SEC’s privilege log which suggest they may be highly relevant to this case.

One, in particular, is an email chain “concerning discussions with a third party whom Defendants understand received guidance from the SEC to analyze its digital asset under the framework set forth in Director William Hinman’s June 14, 2018 speech”.

“The SEC sent an email to a third party telling them to analyze a digital asset using the factors in the Hinman speech; which speech was just his personal opinion. I understand now – it’s the SEC that needs clarity!”, attorney Jeremy Hogan commented at the time, pointing out the agency’s contradictions.

The document could explicitly prove Hinman’s speech was not merely a personal opinion, but the SEC’s official policy. This has been a key issue in the lawsuit.

Furthermore, if the Judge confirms that the SEC spent all this time insisting the speech was merely Hinman’s personal opinion while providing guidance based on that speech, the SEC will likely be in a bad place throughout the rest of the lawsuit.

Judge wants to review the email chain

The breaking news here is that Judge Sarah Netburn has ruled in favor of Ripple’s request and will be adding the documents and the email chain to the in camera review.

“Defendants’ request is GRANTED. The SEC shall submit the two documents related to the SEC’s meetings with law firms and the email chain for in camera review, along with a submission explaining its privilege assertions for each of those documents, no later than October 15, 2021. The SEC shall file a redacted version of its submission on the public
docket. Defendants’ response is due no later than October 22, 2021. SO ORDERED.”

When will the Judge complete the review and rule on the SEC’s deliberative privilege process issue, it is unknown, but Ripple has recently filed a revised response on the matter.

The Defendants, led by attorney Matthew C. Solomon, are making the point that no Deliberative Process Privilege (DPP) exists because the Securities and Exchange Commission has never deliberated about policy regarding digital assets.

Ripple’s attorneys are placing the SEC between two options:
– Its officials’ views on digital assets – including Hinman’s speech – are only personal opinions, which means there is no Deliberative Process Privilege case to be made;
– Its officials’ views were policy, there is a DPP case to be made, but Hinman’s speech and other officials’ views can be used as evidence against the SEC in the lawsuit.

It also seems that a memorandum by the SEC’s Division of Corporation Finance relating to a “legal analysis of XRP” circulated amongst certain SEC individuals on June 13th, the day before Hinman’s speech.

Judge Sarah Netburn will be the one making the ruling regarding the privilege issue, but the SEC has already been ordered to hand over many of those documents to Ripple’s attorney and despite the Judge’s orders, the agency refused to do so.

This is the SEC’s last chance and it looks quite bleak for the financial watchdog.

There’s more on Ripple:

  1. Ripple calls negligence as SEC seeks $1.38 billion from XRP lawsuit
  2. Ripple lawsuit raises hopes as ‘Crypto Mom’ condemns SEC policy
  3. SEC v. Ripple: XRP Holders score “huge win” with Amicus Curiae status
  4. SEC pushes back against Ripple’s “flawed search” of evidence on XRP
  5. Ripple running out of time as BIS ‘conspires’ to end cryptos’ threat to financial system
  6. SEC v. Ripple: XRP’s utility and currency value backed by former U.S. Treasurer
  7. Ripple pushes SEC up against the wall: “If personal opinions, then no privilege”
  8. Ripple buries SEC in paperwork in XRP lawsuit: Nearly 30,000 requests
  9. Ripple responds to Senator Toomey on XRP, the SEC, and how to do better

SEC v. Ripple: What’s next on the XRP lawsuit agenda?

Read this next

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

Digital Assets

FalconX launches Prime Connect on Deribit

“We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

<