SEC v. Ripple: Next hearing may result in major win for Ripple

Rick Steves

“The problem with a settlement between now and November 12 is that the parties won’t know how strong each side’s position is until after discovery closes”.

J.P. Morgan Chase close to switching phone line trading to cloud

The SEC v. Ripple lawsuit has taken several twists and turns but despite the court the discovery extensions granted by the court, there is a growing feeling that settlement may be on the horizon.

The key date is August 31 as the court scheduled a hearing with both parties to discuss the privilege dispute that has been dragging for months.

The SEC refuses to hand over critical documents despite the Judge’s insistence because it claims they are protected under the DPP (deliberative process privilege), which aims to protect not merely documents, but also the integrity of the deliberative process itself.

LIVE at the SEC v. Ripple hearing: XRP Holders vow to “max out conference call”

These documents, most regarding the SEC’s views on ETH were already found relevant by the Judge for the Court’s eventual analysis with respect to the Howey factors.

“In other words, this upcoming hearing is very important because Ripple could potentially get some documents that could really help it advance its position that ‘XRP is like Ether and in 2018 the SEC said Ether is not a security and therefore XRP is not a security'”, attorney Jeremy Hogan explained in a video.

SEC v. Ripple: XRP Holders uncover video bombshell to throw against SEC

According to Mr. Hogan, that triggered a chess match: “The SEC has deployed a Queen’s Gambit in this litigation – sacrificing its position on the Fair Notice Defense in order to solidify its central position that XRP was sold as a security”.

Because the Judge found Ether’s status relevant to the case in the April 6 hearing, the SEC filed William Hinman’s affidavit to protect him from being deposed: “my own personal views”, he said.

SEC appoints CFA’s Director of Investor Protection while under fire for Ripple lawsuit on XRP

“The SEC was going to in a sense admit to some extent that there was confusion in the marketplace about digital securities in exchange for strengthening its position that XRP was a security. Because If Hinman and the SEC had taken an official position there would be more certainty for other crypto coins but in turn that would allow Ripple to argue XRP was just like Ether”, Mr. Hogan said.

Still, Mr. Hinman’s “personal views” argument may go into conflict with his statements in 2018 where he stated “we” as in the agency.

Mark Cuban blasts SEC Chair on crypto clarity as Ripple lawsuit lingers

“And by arguing that the SEC took no position on whether ether is a security or not, it can argue that any comparison between the two is irrelevant. Now whether that argument works is complicated but the gambit at least allows them to make the argument. So, keep that in mind as we see the next couple of weeks unfold”.

The Judge has recently granted a motion to extend discovery again to accommodate the depositions of the individual defendants, Brad Garlinghouse (September 14) and Chris Larsen (September 20).

SEC v. Ripple: Court updates agenda for XRP lawsuit

This, however, may become irrelevant to the case if the key hearing on August 31 ends in a final blow for the SEC. That is the reasoning of attorney Hogan, based on YouTuber Bitboy Crypto’s views.

“The problem with a settlement between now and November 12 is that the parties won’t know how strong each side’s position is until after discovery closes”, Mr. Hogan continued, showing caution as the SEC is unlikely to settle before knowing the fate of its motion to strike Ripple’s Fair Notice defense.

SEC v. Ripple: XRP Holders uncover video bombshell to throw against SEC

“The SEC’s Queen’s Gambit has put a lot of weight on that motion and it’s still not resolved and the Judge has not told us when she is going to make a decision on it”.

The litigation has the best chance at resolving when and if the SEC’s gambit fails, he stated. “Otherwise, we are still looking at the Ripple case reaching the Judge on Summary Judgment in early 2022”.

SEC v. Ripple: Find here the daily updates to the XRP lawsuit

    Read this next

    Institutional FX

    SEC closer to approve 24X’s application for a pioneering 24/7 trading venue

    “Opening the first-ever exchange offering around-the-clock trading in U.S. equities is unprecedented and would create major new opportunities for broker-dealers and their institutional and retail customers around the world. 24 Exchange is excited at the potential for bringing these opportunities to the global market for U.S. equities.”

    Digital Assets

    Shiba Inu Enhances Privacy & Security with New Encryption

    SHIB, the force behind the Shiba Inu cryptocurrency, today introduced Fully Homomorphic Encryption (FHE) into its platform, ensuring unmatched data protection for its users.

    Digital Assets

    Binance Broadens Its VIP Invitation Program for Traditional Asset Traders

    Step Into the Future of Trading: Binance Invites Traditional Asset Traders to Join Its Exclusive VIP Program

    Digital Assets

    Algotech Presale Revolutionizes DeFi Scene, Surpassing $1 Million Raised in Just Weeks

    Emerging Cryptocurrency trading platform Algotech (ALGT) known to be famous with its cutting-edge features. The TradFi platform features advanced algorithms to provide a competitive edge to traders. 

    Fintech

    Revolut enables direct transfers from Singapore to Bangladesh and Kenya

    British fintech firm Revolut has broadened its array of services with the introduction of the “Mobile Wallets” feature in Singapore, facilitating direct money transfers to Bangladesh and Kenya.

    Digital Assets

    SBF claims “zero loss” to FTX customers, 100-year sentence is “grotesque”

    Sam Bankman-Fried, the former FTX CEO who was found guilty of fraud charges last year, is facing his sentencing next month. But before that day arrives, he’s making a plea for what he considers a fair shake.

    Digital Assets

    Bitcoin nears $62,000, sparking retail buying frenzy

    Bitcoin dashed past the $61,000 barrier on Wednesday, a peak it hadn’t touched since the waning days of November 2021.

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.

    Institutional FX

    DKK reports 226% growth in 2023 with eyes on African expansion

    “Our numbers are beginning to show how we are powering, the growth required by emerging markets, and we plan for the success of our strategies to continue to thrive in 2024.”

    <