Ripple Labs scored a big win as Judge Torres ordered the Securities and Exchange Commission to turn over documents from a 2018 letter made by William Henman, then director of corporate finance at the SEC.
This ruling comes after a long battle that may decide the fate of many cryptocurrencies.
After an earlier ruling by Judge Sarah Netbourne that emails and drafts related to the former director’s 2018 letter were not protected by due process privilege, the Securities and Exchange Commission requested clarification of the ruling and reconsideration.
Due process privilege is a term widely used to describe confidential discussions that lead to the announcement of changes in government or policy. Judge Netburn rejected the request for reconsideration and agreed with the Securities and Exchange Commission’s motion for clarification.
The SEC then reaffirmed the DPP’s argument, after which Judge Netburn ordered the production of the documents in question. Then the Securities and Exchange Commission filed objections to the three orders, which Judge Analisa Torres has now overturned.
The Securities and Exchange Commission is now required to provide documentation from Hinman’s letter.
“Based on my understanding of the current state of Ether, the Ethereum network and its decentralized structure, the current offering and sales of Ether are not securities transactions.”
The defeat around Hinman’s statements is more broadly related to SEC . suit It was filed against Ripple Labs, its former CEO Chris Larsen, and current CEO Brad Garlinghouse in December 2020. In the lawsuit, the SEC alleges that the three entities illegally profited from the sale. XRP Coins as unregistered securities.
The judge upholds previous court rulings.
Judge Torres considered Ripple’s assertion that the 2018 speech documents are relevant to the case because “they can be used to obtain potential impeachment evidence or to isolate witnesses at trial,” including Hinman.
Judge Torres overturned the Securities and Exchange Commission’s first objection without being satisfied that Judge Netbourne had erred in ruling that the documents were relevant to the case.
Regarding the SEC’s assertion of protection, Judge Netburn ruled that the documents in Hinman’s letter regarding the status of cryptocurrency as securities were his and not the SEC’s, implying that they were not protected by the DPP. Judge Torres rejected the SEC’s objections to this ruling.
Third, Judge Torres found no error in Judge Netbourne’s assessment of the documents’ content as not legal advice intended to “guide future conduct” or “evaluate past conduct.”
One step closer to clearer industry guidelines.
By ordering the Securities and Exchange Commission (SEC) to produce Hinman’s documents, the judge ripple hands And its two executives is a decisive win that potentially brings them one step closer to overturning the nearly two-year lawsuit.
More importantly, the finding is relevant to the SEC’s future characterization of cryptocurrencies, and thus has been closely watched by the industry.
Following the news, the price of XRP is up 10% and is trading at $0.50 at the time of writing.
it still lowest 85% from an all-time high of $3.40. A Securities and Exchange Commission (SEC) lawsuit was blamed for moving the coin.
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