Ripple (XRP) Lawsuit Against The SEC Takes A New Unexpected Turn
✍️ 30 September, 2022 - 16:58 👤 Editor: Jakub Motyka
- The outcome of Ripple's lawsuit against the SEC is about to come.
- The judge in charge of the case has requested that the documents about Hinman's.
- What new actions will this turn of events bring?
The SEC judgment against Ripple could change after the court order issued by Judge Analisa Torres requesting the Hinman documents. One of the most famous legal processes in the crypto universe may be coming to a conclusion, and Ripple could be the winner.
The Securities and Exchange Commission (SEC) must hand over the documents written by the former director of the SEC's corporate finance division, William Hinman. These include a speech given by Hinman, where he declares that Ethereum and Bitcoin are not securities.
As expected, this would change the course of the trial in favor of Ripple being a key player against the SEC in this case. In past weeks, the commission itself had avoided delivering these documents, alleging that they were protected by the privilege of the deliberation process and later by the attorney-client privilege. Both were annulled, now being forced to present them at trial.
How Did The SEC Lawsuit Against Ripple Start?
The SEC filed a lawsuit against Ripple in 2020 alleging that its token sales violated United States securities laws . Within the lawsuit, they stated that it was a security because XRP was used to raise funds in 2013. Since then, the lawsuit has achieved precedent status, as it could potentially determine which category certain crypto assets fall into versus the law.
According to Ripple General Counsel Stuart Alderotti “After two years of litigation, the SEC is unable to identify any investment contracts. The case boils down to an impermissibly open assertion of jurisdiction over any transfer of an asset.” On this, finally, they have constantly pointed out that their profits come from supply and demand, lacking the essential characteristics that apply to "investment contracts".
What Results Can We Expect From This Legal Process?
Both Ripple and the SEC have pushed for the judge to rule on whether or not the XRP sales violated US securities laws.
On September 17, both parties requested a summary trial, however, with the request for these new documents, Ripple seems to have everything to defend itself. Whatever the outcome, the court ruling could finally determine under the law which cryptocurrencies constitute a security.
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