SEC v. Ripple: Hearing on controversial deposition is “bad for Ripple”, expert says
“If she was satisfied by the briefings she would have simply ordered the deposition to take place.”
Judge Sarah Netburn has scheduled a telephone conference for July 15, 2021, at 3:00 p.m (ET) in response to Ripple’s request to speed up the decision regarding the SEC’s motion to quash the deposition of William Hinman.
Last week, the Defendants had re-noticed ex-SEC Director William Hinman’s deposition for July 19, 2021, which pressured the Judge to make a decision before then, preferably to deny the SEC’s Motion in the eyes of Ripple and its co-founders.
Ripple’s arguments in opposition to the Motion to Quash found resistance from a relaxed SEC that saw irony in the debate over whether William Hinman was a high-ranking official.
A ruling is needed this week given that the deposition is now scheduled for next Monday, July 19. The Judge is likely to make her decision at the July 15 hearing after listening to both parties one last time.
The deposition of the former SEC Director would be a highlight of the SEC v. Ripple lawsuit as William Hinman is the man who provided his (apparently unofficial) take on the status of Ethereum and Bitcoin and then left the SEC and joined a law firm linked to Ethereum.
“My quick take on the scheduling of a conference on a fully briefed motion is that it is bad for Ripple. If she was satisfied by the briefings she would have simply ordered the deposition to take place. She might need more from Ripple if she is to order the deposition”, said attorney Jeremy Hogan.
Tension is becoming inevitable in this lawsuit as Ripple Labs wants to move forward with its business and new use cases for the XRP Ledger as well as with its planned initial public offering.
Its plans to go public via initial public offering will remain tied up until the lawsuit is over. When will the lawsuit end? and Why is it taking so long? are very legitimate questions in such fast pacing industry.
The SEC is unsurprisingly taking its time, stalling against Ripple as it fights for survival while pressuring the court that its decision could ultimately nullify the Howie Test.
Ripple Labs is trying to push the lawsuit forward and end it with a summary judgment on its fair notice defense, which could “save the industry from the SEC” if Ripple wins.
Bringing William Hinman to the court could, however, lead the SEC to revisit the status of Ethereum now that the upcoming upgrade will change the model from proof of work to proof of stake.
