XRP lawsuit: SEC rather settle with Ripple than hand over docs, says attorney
“The SEC will not, in my opinion, turn over these documents. Hence, if we get a ruling that they must be turned over, I believe the case settles w/in 60-90 days from that decision (or possibly sooner).”
The end of the SEC v. Ripple lawsuit might be closer that ever and the light at the end of the tunnel is the bulk of emails and notes related to the Hinman’s speech, an attorney linked to the case argued.
John Deaton, an attorney representing 65,000 XRP holders in the XRP lawsuit via Amicus Curiae status, explained why the Judge’s probable decision to maintain her ruling on the Hinman’s speech emails equals settlement.
Not only are there 63 emails related to the speech but there are 52 drafts of the key speech by the former SEC Director of Corporation Finance in 2018, where he considered Ether and Bitcoin as non-securities.
“The SEC will not, in my opinion, turn over these documents”
The SEC has recently hinted that if Judge Sarah Netburn sticks to her previous ruling of ordering the production of said emails, notes, and drafts, the plaintiff will appeal to Magistrate Analisa Torres to make the final decision. The same goes for the Estabrook Notes, related to a meeting between ex-SEC’s Elad Roisman and Ripple’s Garlinghouse.
Why is the SEC making such efforts and dragging this issue for so long? Because it would put an end to the XRP lawsuit. These documents are so vital for the SEC that they will rather reach a settlement than handing them over to Ripple, said John Deaton.
“Apparently, Roisman gave Garlinghouse the impression XRP was not considered a security. If the Estabrook notes support Garlinghouse’s testimony and must be produced, [then] game over!
“The SEC will not, in my opinion, turn over these documents. Hence, if we get a ruling that they must be turned over, I believe the case settles w/in 60-90 days from that decision (or possibly sooner).
John Deaton reminded that Ripple lawyers informed the Court very recently that they believe the SEC could be “concealing (potentially)” evidence that Hinman himself or others may have analyzed #XRP and concluded it’s not a security.
“In other words, is XRP contained within one of the 52 “unique drafts” of the speech? Was it removed? If so, by who? If it was included; by who? Obviously, I don’t know precisely what’s in the 63 emails; 52 drafts; or any of the suggestions and comments that accompany them. But it’s safe to say it’s helpful to Ripple and very damaging to the SEC’s case. If XRP is contained within a draft or it was suggested by one or more of the staff to be included along with #BTC and #ETH: GAME OVER!”
The attorney and founder of CryptoLaw.us gave further background, adding that Ripple CEO Brad Garlinghouse and CTO David Schwartz met with Clayton and Hinman in August 2018 to plead with them to provide similar clarity for XRP just as they did for ETH.
“At a minimum, there was no consensus #XRP was a security. But the truth may very well be that some advocated to include XRP in the speech! Also, don’t forget in November 2018, Garlinghouse met with Commissioner Roisman regarding the lack of clarity over XRP.”
In regard to Judge Netburn’s upcoming ruling on whether the Estabrook notes from the Roisman meeting must be turned over to Ripple, Deaton reminded that Ripple’s CEO left that meeting feeling very positive about a decision over XRP.
“Apparently, Roisman gave Garlinghouse the impression XRP was not considered a security. If the Estabrook notes support Garlinghouse’s testimony and must be produced: GAME OVER!”
John Deaton is positive that a court ruling in favor of producing the emails and notes will lead to settlement within two to three months or possibly sooner. Otherwise, there is a 50-50 chance for settlement.