- US securities regulator’s motion to seal records has been denied.
- Court ruling favors public access to internal documents, suggesting their significant influence on the case.
- Court dismisses SEC’s argument to seal documents, emphasizing transparency.
On December 22, The U.S. Securities and Exchange Commission (SEC) took action intending to safeguard internal communication such as emails, text messages, and expert reports produced after Hinman’s speech.
The SEC contended that their mission held greater significance than the public’s entitlement to access these documents, citing their lack of relevance to the court’s summary judgment decision, among other factors.
Nevertheless, the SEC’s endeavor to seal records of their internal deliberations has been rejected, much to the delight of the Ripple and cryptocurrency community.
Judge Rejects SEC Motion to Seal Hinman Documents
This motion was initially prompted by former director William Hinman’s speech in June 2018, wherein he stated that Ether, the native token of the Ethereum blockchain, should not be categorized as a security.
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Nevertheless, U.S. District Court Judge Analisa Torres dismissed the motion, asserting that the documents in question are “judicial documents” and should be subject to a strong presumption of public access.
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Judge Torres emphasized that the Hinman Speech Documents could influence the court’s ruling on the motion.
Furthermore, Judge Torres rejected the SEC’s argument that sealing the documents was necessary to maintain openness and candor within the agency.
Ripple Denied Motion to Seal References Linked to XRP Sales
She stated that the Hinman Speech Documents did not qualify for protection under the deliberative process privilege since they were not connected to an agency position, decision, or policy.
Although the court ruled in favor of making the Hinman Speech documents public, it granted two of the SEC’s other requests. These requests involved redacting the names, identifying information of SEC experts, XRP investor declarants, and the defendants’ personal and financial details.
However, the court denied several motions from Ripple, including those seeking to seal references linking Ripple’s revenues to XRP sales and the disclosure of compensation offered to trading platforms, among other matters.
Ripple has regarded the speech by William Hinman as a crucial piece of evidence in its ongoing legal dispute with the SEC. The SEC alleges that the sales of Ripple’s XRP violated U.S. securities laws.
On the Flipside
- The denial of the motion to seal the records may raise concerns about the potential disclosure of sensitive information and internal deliberations of the United States securities regulator.
- Making the documents public may increase scrutiny and analysis by the Ripple and crypto community.
- The denial of Ripple’s motions to seal specific information may have implications for the company’s defense strategy, as certain details linking its revenues to XRP sales and compensation offered to trading platforms will now be accessible to the public.
Why You Should Care
The ruling to make the Hinman documents public is significant for the Ripple-SEC case as it provides crucial evidence that could influence the court’s decision.
This development holds implications beyond the specific case, as it sheds light on the SEC’s approach to classifying cryptocurrencies and could have broader ramifications for the entire crypto market’s regulatory landscape.
To learn more about the hidden dangers uncovered by a lawyer in the SEC vs. Ripple XRP case, read here:
SEC vs. Ripple: XRP Lawyer Uncovers Hidden Dangers in Complaint
To stay updated on Tether’s fortified reserves and the surge in USDT profits in Q1, read here:
Tether Fortifies Reserves & USDT Profits Surge in Q1 Triumphs
