Ripple’s victory against the SEC in court seems within reach


Ripple wins battle against SEC – It has now been several years since the company Ripple is fighting a legal battle against the SEC. She is accused of having conducted an unregulated sale of securities. Finally, the latest legal developments seem to lean in favor of Ripple.

A win for Ripple, a loss for the SEC

In December 2020, the SEC sued Ripple for using unregistered securities to raise funds. This lawsuit thus targeted the sale of XRP tokens carried out by Ripple.

After 3 years of fierce battle and more than $200 million spent to defend Ripplethe company could well be on its way to winning its case.

On May 16, a court ruling breathed new life into Ripple. There SEC will not be able to seal its internal documents relating to a speech delivered in June 2018 by the former Director of the SEC’s Corporate Finance Division, William Hinman.

Tweet announcing the news – Source: Twitter.

During this speech, Hinman had said that ETHthe native currency of the Ethereum blockchain, was not a financial security. A declaration with serious consequences, which could allow Ripple to apply the same logic to the XRP token.

Faced with this risk, the SEC had filed a motion on December 22 to seal internal emails, text messages and expert reports that followed this speech. She argued that her mission went beyond the ” public right to access documents. Judging that the latter had ” irrelevant for the court’s summary judgment decision, among other arguments.

It was however without counting on the judge Analisa Torres of the United States District Court. Indeed, it ruled that these documents were “court documents” subject to a strong presumption of public access. A decision that can be seen as a victory for Ripple and the crypto community.

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Ripple wins the battle but not the war

Unlike the SEC, Judge Torres considers these documents to be relevant in the case between the institution and Ripple.

“[Les documents]could reasonably tend to influence [la] decision [du tribunal] on a motion. »

Moreover, she rejected the SEC’s argument that the sealing of the documents was necessary to preserve ” openness and frankness » within the SEC:

“Documents relating to Hinman’s speech are not protected by deliberative process privilege because they do not relate to any agency position, decision or policy. »

This decision could have major repercussions on the case. For its part, Ripple considers this speech as a key piece of evidence in his legal fight pending against the SEC, which alleges that Ripple’s XRP sales violated US securities laws.

In practice, the documents could be accessible by June 6, according to the judge.

However, even though the court has ruled that the documents relating to Hinman’s speech will be made public, it has granted the other two SEC motions which demanded the redaction of the names and identifying information of the SEC experts and XRP investor filers, as well as the personal and financial information of the defendants.

Of course, the Ripple business has not stopped working. Thus, this one recently announced the acquisition of Metaco, in order to offer calibrated services for institutional clients.

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