Ripple vs. SEC case: The court ruling is imminent

The legal battle between Ripple and the Securities and Exchanges Commission (SEC) continues. A ruling that will impact the entire crypto market could be handed down in the coming days. The crypto community highly anticipates it. In the meantime, John Deaton, a pro-XRP lawyer, has given his opinion on the outcome of the case.

Ripple case: what impact for the crypto market?

The case between the SEC and Ripple could soon be decided. As Brad Garlinghouse stated, the decision of Analisa Torres, a judge in the Southern District of New York, will have an effect on the entire crypto sector.

Indeed, the Securities and Exchanges Commission (SEC) accuses Ripple of selling unregistered securities. For Gary Gensler, Ripple and its executives were guilty of putting millions of XRP tokens up for sale without the SEC’s approval.

Other crypto projects using staking could be impacted if Ripple is convicted in court. These include Ethereum, Tezos, Avalanche, etc.

For Gensler, the fact that the public invests in anticipation of a return on investment as well as getting returns on these tokens makes them financial securities. As such, they could not have been sold to investors without SEC notification.

Controversial documents could influence the court decision

Despite the SEC’s aggressive stance, the case may be turning to Ripple’s advantage. Indeed, according to pro-XRP lawyer John Deaton, the release of William H. Hinman’s controversial documents could be a game changer.

According to him, this will occur despite the SEC’s opposition to any publication. The lawyer pointed out that these documents could help resolve other disputes, such as the lawsuit against the Dragonchain project.

Regarding the Hinman emails and speech drafts: the SEC has requested for them to remain sealed, even after Judge Torres’ ruling on summary judgment. I believe the emails and speech drafts will be made public at some point, regardless of Judge Torres’ decision on whether to seal. https://t.co/BcYTuh9QrW

— John E Deaton (@JohnEDeaton1) March 19, 2023

As a reminder, William H. Hinman is an American attorney specializing in securities regulation. Among other things, he has worked as the director of the finance division at the SEC.

He is known by the community for a speech he gave in June 2018. Among other things, he had suggested that bitcoin and Ethereum should not be classified as financial securities. His stance on the subject had a significant impact on the regulation of cryptocurrencies in the US.

However, internal SEC documents were later leaked, submitting that Hinman had acted outside his duties. He allegedly did not contact the SEC’s legal team before speaking.

Some documents also revealed conversations with crypto company officials. This led to suspicions about possible conflicts of interest.

The documents drew criticism. Several voices have been raised demanding an internal investigation into its relationship with crypto companies.

Ripple’s defenders believe that the disclosure of documents about the Hinman case could influence the court’s decision in Ripple’s favor. In the meantime, the SEC chairman has no plans to stop his fight against cryptos.