Crucial victory from Ripple over SEC: The judge accepted the request

Ripple vs SEC

In the lawsuit between Ripple and the US Stock Exchange (SEC), Ripple made a very significant gain. Despite strong objections from the SEC, the court accepted Ripple’s request that William Hinman, a senior former SEC executive, appear in court as a witness.

Sarah Netburn, the judge in the case between Ripple and the SEC, accepted Ripple’s request that William Hinman, the former head of the SEC’s Corporate Finance Division, appear as a witness in court to testify about Ethereum and XRP. Netburn extended the date of July 19, which is the date on which Hinman will testify, by one week, so that the parties can discuss the issue and reach an agreement.

The SEC wrote a letter of objection to Ripple Hinman claim, but…

The SEC had vehemently objected to Ripple’s request for Hinman. The institution, which filed a lawsuit against Ripple with the allegation that more than $ 1 billion 300 million worth of XRP was sold unregistered in December, stated that the participation of a senior SEC executive in the case occurred in special and exceptional circumstances, and this was not the case in this case. The SEC even stated in the objection letter it wrote to Judge Netburn on the subject that this request was against the law and that the court would also take great responsibility if it was accepted. The agency also claimed that this would alienate qualified employees from serving as directors in the SEC in the future.

In 2018, he himself said ‘they are not securities’

Netburn’s decision shows that she, like Ripple, believes Hinman’s testimony will provide an important insight into the SEC’s perspective on cryptocurrencies. As is known, from the very beginning of the case, the focus of Ripple’s defense has been based on the fact that the SEC did not ‘fair notice’ to them that XRP could be a security. The SEC, on the other hand, stated that they had no obligation to do so and that they could not do so during the investigation phase. The SEC has ruled in the past that Bitcoin and Ethereum are not securities. Ripple demands that XRP be seen in the same way. In fact, in a speech in 2018, Hinman himself said that the two biggest cryptocurrencies are not securities. The SEC argues that what was said in this speech was Hinman’s personal opinion, even with the help of his team.

The SEC attorney stated that the agency was acting in official letters, not from the words of its employees or individual commissioners, and said that what Hinman said and delivered did not fall under the responsibility of a federal agency.

He received $1.6 million in compensation before coming to the SEC and then returned to that company.

As it will be remembered, Hinman was a name that drew question marks in the SEC for a while. Hinman, who came to the SEC from the law firm Simpson Thacher, received $ 1.6 million in compensation when leaving the company. This law firm was also a member of the Ethereum Association and oversaw the $100 million IPO of Chinese mining firm Canaan.

Hinman, who served as the director of the SEC’s Corporate Finance Division from May 2017 to December 2020, left the SEC and returned to the firm, for which he received $1.6 million in compensation.

It was also noteworthy that the hearing, held by teleconference yesterday, was followed with great interest by members of the XRP community both in the USA and in many parts of the world.

SEE ALSO; New important day in Ripple vs SEC case July 15

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *