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Court Orders SEC To Hand Over Key Documents In Ripple Lawsuit

In the latest installment of XRP Lawsuit News, Ripple Labs has scored a minor victory in its lengthy lawsuit with the Securities Exchange Commission (SEC) by obtaining key documents that may aid Ripple in its litigation against the regulator.

Ripple general counsel Stuart Alderoty announced the XRP SEC news on Twitter on Thursday, declaring a victory in an 18-month battle with the U.S. regulator over the collection of discovery materials known as “the Hinman documents.”

The Hinman Documents

The documents revolve around former SEC director William Hinman and a publicized speech he gave over four years ago declaring that Ethereum, like Bitcoin, was “sufficiently decentralized” to be exempt from federal securities regulation.

Hinman’s remarks depict the thickest cloud currently looming over ongoing discussions about crypto regulations. They play a vital role in the SEC’s December 2020 lawsuit against Ripple, which serves as the foundation for the SEC’s case against Ripple. The regulator initially claimed that the cryptocurrency issuer sold XRP as an unregistered security. 

Ripple has sought the documents through discovery on multiple occasions, while the SEC has attempted to withhold them on at least three occasions. Magistrate Judge Sarah Netburn of the Southern District of New York overruled the SEC’s position twice, first in February and then again in April.

Last month, Judge Analisa Torres ruled against the SEC’s attempts to withhold the documents for the third time.

Critical Point For Crypto Regulation

In the announcement, Alderoty stated, “I’ve always felt good about our legal arguments, and I feel even better now. I always felt bad about the SEC’s tactics, and I feel even worse about them now.”

Ripple CEO Brad Garlinghouse also took to Twitter to voice his thoughts on the matter, stating, “The SEC’s pursuit of a policy objective isn’t about ‘A faithful allegiance to the law.’ It’s about power.” He further added, “There is no regard for those companies and people that this approach has harmed. We all should be outraged. The SEC has clearly forgotten that the government works for the people.”

Although gaining access to documents related to Hinman’s 2018 speech may provide considerable insight into his and his colleagues’ thought processes at the SEC. This decision came shortly after another court denied the SEC’s request for access to Ripple’s executive compensation records.

The development will almost certainly reignite the lengthy dispute in which both Ripple and the SEC recently requested a summary judgment rather than a trial.

Current SEC chair Gary Gensler has not publicly and specifically reacted to Hinman’s assessment.

More XRP SEC News: Cardano Founder Charles Hoskinson Calls Case Against XRP Absurd Amid Ripple Labs Lawsuit


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