SEC refuses to release recordings of William Hinman's speech on ETH status to Ripple

Article Reading Time:
2 minutes.

US Securities and Exchange Commission (SEC) challenged the court's decision to provide Ripple with materials from a speech by the former SEC finance director on the status of ETH.

In January, a Southern District Court judgeNew York City regulator Sarah Netburn ordered the regulator to hand over materials from a speech by former SEC Chief Financial Officer William Hinman to Ripple. In 2018, he stated that ether is not a security, but rather a commodity. Hinman's speech can significantly affect the outcome of the case. Ripple management believes that XRP should also be considered a commodity, and the company should be cleared of charges.

However, the SEC does not agree with the judge's rulingabout providing recordings of Hinman's speech, and filed a corresponding objection to the court. The Department claims that this speech has nothing to do with the lawsuit. Materials related to speeches by SEC employees are considered internal documents that should not be disclosed, the agency explained.

The regulator also notes that the draft speechwas preliminary and required legal advice. Speech materials are therefore subject to deliberative privilege, even though those documents may be relevant. The SEC once again added that Hinman expressed his personal views on ether and not the Commission's official views on crypto assets.

It is worth noting that during the March hearing oncase between the SEC and Ripple, Judge Netburn said that XRP has the characteristics of a currency, not a security. Thus, she reassured Ripple executives that the trial would be successfully completed. However, Garlinghouse has a fallback option - if he loses the legal battle, the company will simply move to another jurisdiction.

Let us remind you that the SEC proceedings with Ripplestarted at the end of 2020. The department accused the company's executives, Brad Garlinghouse and Chris Larsen, of organizing an illegal ICO that violated the US Securities Act.