- It’s about SEC member Hinman’s documents
- He didn’t recognize cryptocurrencies as securities a couple of years ago
- And so Ripple and other cryptocurrency companies aren’t breaking the law
A federal judge denied the SEC’s motion to shut down Hinman’s documents. Such a decision would benefit Ripple Labs Inc.. As well as the entire industry, if the company wins the dispute.
What the court said
The case is before Judge Analis Torres. It believes that sealing documents related to William Hinman’s speech violates the principles of openness and honesty within the agency.
“Such interest would not be substantial enough to outweigh the strong presumption of public access.”
In December 2020, the SEC filed suit against Ripple. They keep saying that the sale of XRP was an unregistered offer of securities.
Moreover, the regulator finds company executives Chris Larsen and Brad Garlinghouse guilty of aiding and abetting Ripple’s violations.
But the cryptocurrency company has an important argument. In June 2018, former SEC official Hinman stated that ETH sales are not securities transactions.
The speech was the main focus of the dispute between the SEC and Ripple, as Ripple seeks to bolster its fair notice protections.
The outcome of the legal battle between Ripple and the SEC could set a precedent for how U.S. authorities classify cryptocurrencies.
Which means companies can have no fear of being sued for trading in securities.