Ripple Obtains Internal SEC Documents on Hinman Speech

Ripple has obtained internal documents from the SEC relating to the speech by former head of the regulator’s corporate finance division, William Hinman. The disclosure was reported by the company’s general counsel, Stuart Alderoty.

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

“After more than 18 months and 6 court orders, we finally have Hinman documents (internal SEC emails and drafts of his infamous 2018 speech),” Alderoty said.

According to him, the documents remain confidential for now, but “it was worth fighting for.”

The speech concerns Hinman’s 2018 remarks. He stated that for various reasons Bitcoin and Ethereum are not securities.

The SEC argued that the former official’s speech reflected his personal views. In February the Commission filed a motion with the court, according to which Hinman expressed the corporate finance department’s position. In this way the agency sought to extend the DPP to the draft remarks.

On July 12, 2022, Judge Sara Netburn described the regulator’s position as hypocritical and denied the motion to withhold disclosure of the internal documents.

On August 16, the Commission accused Ripple’s lawyers of using a “fundamentally inconsistent argument.” In its opposition to the court’s decision, the SEC stated that Hinman’s speech did not relate to the case, and cited the attorney-client privilege.

At the end of September, Judge Analisa Torres ordered the agency to disclose the documents. Then attorney James Filan suggested that the regulator might delay the transfer of the internal papers by another two to three months.

Commenting on Alderoty’s tweet, Ripple CEO Brad Garlinghouse said that “when the truth eventually comes out, the shamefulness of their behavior will shock you.”

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 SEC wants you to think that it cares about disclosure, transparency and clarity. Do not believe them,” Garlinghouse wrote.

The XRP token did not react to the latest events. Over the past 24 hours the asset has fallen 3.6%, according to CoinGecko.

Earlier, Fox Business published a wide-ranging investigation into the SEC’s case against Ripple. Journalists concluded that the staff behind the filing could be affiliated with Ethereum.

Empower Oversight, a nonprofit organization, pointed to a potential conflict of interest in the actions of former senior Commission officials.

In May, SEC representatives could not “confirm or deny” the authenticity of the video recording of Hinman’s Fintech Week 2018 speech.

In September, the parties filed motions for a decision in the case of a potential violation of the Securities Act in a streamlined procedure. The plaintiff and the defendant explained that the judge had sufficient information for this.

On September 23, Garlinghouse declined to have the case heard by a jury. XRP’s price rose sharply in response to his remarks.

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