Ripple vs. SEC case: Has the fog finally cleared?

The Ripple vs. SEC trial has been a long-awaited event. Judge Torres has not yet delivered her final verdict. But the recent decision she made indicates a potential victory for the company behind XRP in the near future.

Torres rejects SEC’s request

The SEC has always opposed making public the transcript of William Hinman’s June 2018 speech. In that speech, the former director of the agency’s Division of Corporation Finance stated that Ethereum is not a security.

As a solution, Gary Gensler’s team filed a motion on December 22nd last year to obtain access to the document. And, consequently restrict its availability.

However, in the latest news, United States District Judge Analisa Torres rejected this request. Through an order issued on May 16th.

Another win for transparency! Unredacted Hinman emails to be publicly available soon – stay tuned as the lawyers work through the mechanics to make that happen. https://t.co/o6puPypRHd https://t.co/qmaLVeQaP8

— Brad Garlinghouse (@bgarlinghouse) May 16, 2023

To add insult to injury, the same judge also rejected the SEC’s argument that sealing the documents would preserve “openness and candor” within the agency.

“The Hinman Speech Documents are not protected by the deliberative process privilege because they do not relate to an agency position, decision or policy,” she argued.

This decision brought joy to the opposing party, Ripple, and the entire crypto community. Even XRP saw a bit of green yesterday right after the announcement. As there was indeed a 2.6% increase, pushing the crypto’s price to $0.43.

Why is this document causing so much concern?

If the SEC is so eager to obtain Hinman’s papers, it is because they could pose a danger to its agents.

“If these documents were to be part of the public record, the SEC would be prevented from making such arguments in the future (in appeals in this litigation or in other litigation), which would be highly prejudicial to the SEC. […] The Hinman speech documents reflect discussions and internal deliberations of numerous SEC officials,” reads the motion filed in December 2022.

It is evident that the SEC is not one to easily give up. If the crypto enthusiasts win this battle with Ripple, the war they are currently preparing will not be in their favor. If, for example, the SEC manages to dissuade banks from working with crypto exchanges, there will be a lot at stake.