- We are talking about the documents of SEC member Hinman
- A couple of years ago, he did not recognize cryptocurrencies as securities.
- This means that Ripple and other crypto companies do not violate the law.
federal judge rejected the SEC’s motion to close the Hinman papers. This decision will benefit Ripple Labs Inc. And also the entire industry if the company wins the dispute.
What the court said
The case is heard by Judge Analis Torres. She believes that sealing documents related to William Hinman’s speech is contrary to the principles of openness and sincerity within the agency.
“Such an interest would not be substantial enough to outweigh a strong presumption of public access”
In December 2020, the SEC filed a lawsuit against Ripple. They claim that the sale of XRP was an unregistered offering of securities. Moreover, the regulator considers company executives Chris Larsen and Brad Garlinghouse guilty of aiding and abetting Ripple in violations.
But the crypto company has an important argument. In June 2018, former SEC official Hinman stated that ETH sales are not securities transactions. This speech has become a major point of contention between the SEC and Ripple as Ripple seeks to bolster its defense of fair notice.
The outcome of the legal battle between Ripple and the SEC could set a precedent for how US authorities classify cryptocurrencies. This means that companies may not be afraid of lawsuits that they trade in securities.