XRP Lawsuit: Ripple could prove SEC lied about Hinman’s ‘personal opinions’

Rick Steves

“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.

The SEC has opposed Ripple’s request to add three documents to the upcoming in-camera review to be conducted by Judge Sarah Netburn.

The agency stated those documents are not responsive to the Court’s prior orders, and the SEC placed the documents on a privilege log only in an (apparently futile) attempt to avoid disputes.

The plaintiff added that said documents “reflect deliberations by SEC staff, and have therefore been redacted or withheld pursuant to the deliberative privilege process”, according to the letter.

The SEC said there is “no need for the Court to review the three additional documents”, but if it finds appropriate to “pierce the privilege” and orders an in camera review, “the SEC respectfully requests that it be afforded the opportunity to make a submission explaining its privilege assertions for each of these documents, just as the Court did for the documents the SEC has already submitted in camera.

Documents may prove SEC’s Hinman 2018 speech was on behalf of agency, not a ‘personal opinion’

The SEC seems to have tried to keep the documents hidden from Ripple, but the team of lawyers detected the descriptions from the belatedly produced privilege log, which suggests they may be highly relevant to this case.

The documents include 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 Defense team led by Matthew C. Solomon argued that the documents, based on the descriptions provided by the SEC, appeared to be most relevant to the claims and defenses in this case.

“The third 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. Had this privilege log been provided before Defendants filed its motion on August 10, 2021, Defendants would have included all three documents in Appendix A.

“Indeed, if the SEC had provided this privilege log any time in advance of the August 31 hearing, Defendants would have asked the Court to include these three documents in its in camera inspection. Instead, Defendants had to ask the SEC voluntarily to include the documents in its September 14 submission to the Court. The SEC filed its brief (ECF No. 355) without responding to this request.

“The next day, the SEC indicated that it would not submit these documents for the Court’s in camera review “absent a specific directive from the Court.”

Judge Sarah Netburn will soon be conducting the in-camera review of the SEC’s privilege log. It is not clear who the ‘third party’ mentioned in the log’s description is, but any guidance based on the framework set forth by William Hinman’s 2018 speech should be relevant.

Firstly, 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.

“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, pointing out the agency’s contradictions.

Secondly, the guidance provided to the ‘third party’ might also be relevant to show the SEC’s inconsistency in terms of regulatory clarity. This can be used to support Ripple’s fair notice defense, which claims the SEC failed to explain the firm and the broad digital asset space that XRP could be considered a security.

In the meantime, Ripple has just gained a heavy weight backer as the SEC v. Ripple could determine the future of the digital asset space. Former U.S. Treasurer Rosie Rios has come forth in defense of Ripple’s XRP currency value and utility via a simple tweet.

For more Ripple (XRP) related articles, click here.

Read this next

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

<