The court case between the SEC, who accuse Ripple of selling unlicensed securities, and the blockchain company is fast approaching the 2-year mark. Up until now, there have been countless back-and-forths, objections, and red tape preventing the courts from reaching any clear resolution on the matter.
One of the key misgivings Ripple has had about the case is the fact that despite Ether being sold in a similar manner as XRP when founded, ETH was declared to not be a security by former SEC commissioner William Hinman. Ripple believed this could indicate preferential treatment and sought out the transcript of the speech in which Ether was declared to not be a security.
The SEC objected for a long time but was instructed by New York judge Analisa Torres to hand over the transcript last month.
Contents to Remain Private for the Time Being
The long-awaited turnover of the documents and e-mails related to the speech was announced by Ripple General Counselor Stuart Alderoty, who stated he had seen them and believed they were well worth the fight. However, the documents will remain private for now, reportedly at the request of the SEC.
Over 18 months and 6 court orders later, we finally have the Hinman docs (internal SEC emails and drafts of his infamous 2018 speech). While they remain confidential for now (at the SEC’s insistence), I can say that it was well worth the fight to get them.
— Stuart Alderoty (@s_alderoty) October 20, 2022
Alderoty followed up by saying that although he always believed Ripple was in the right, the receipt of said documents has only vindicated his assertion.
“I’ve always felt good about our legal arguments, and I feel even better now. I always felt bad about the SEC’s tactics, and I feel even worse about them now.”
A Turning Point May Have Been Reached
The announcement was met with relief from the Ripple community. Amid tweets requesting a flurry of virtual champagne corks, Ripple co-founder Brad Garlinghouse chimed in to allude to potential wrongdoings by the SEC, alleging that his beliefs about the agency’s conduct have also turned out to be true. He also hinted at future disclosure of the documents.
The SEC wants you to think that it cares about disclosure, transparency and clarity. Don’t believe them. When the truth eventually comes out, the shamefulness of their behavior here will shock you. https://t.co/rqEzDXEx1A
— Brad Garlinghouse (@bgarlinghouse) October 20, 2022
The results of the turnover will likely be seen in court soon.
Although the mood in the community of the (currently) 6th largest cryptocurrency by market cap is celebratory, it’s important to note that the ongoing case has already seen plenty of upsets. The fate of Ripple may still be hanging in the balance – although hopefully not for much longer.