A significant legal development has unfolded in the ongoing legal tussle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). A request from the SEC to keep internal records about a key speech made by former director William Hinman confidential has been rejected by the courts. This move has been welcomed by both Ripple and the broader cryptocurrency community.
In June 2018, Hinman, who was serving as the director of the SEC's corporation finance division, delivered a pivotal speech where he declared that Ethereum's native cryptocurrency, ETH, did not classify as a security. Following the speech, the SEC made an attempt to seal internal communications, including emails, text messages, and expert reports, arguing that their mission took precedence over the “public’s right” to access these documents, which they claimed had “no relevance” to the court’s summary judgment decision.
Contrary to the SEC's arguments, U.S. District Court Judge Analisa Torres ruled in favor of public access, asserting that these documents are “judicial documents” and thus subject to a high presumption of public accessibility. She further pointed out that these documents have the potential to influence the court's ruling on a motion.
Torres also dismissed the SEC's argument that confidentiality was required to maintain "openness and candor" within the SEC, stating that the deliberative process privilege did not apply to these documents as they did not pertain to an agency decision or policy.
However, the court did side with the SEC on some matters, allowing the redaction of the names and identifying details of SEC experts and XRP investor declarants, in addition to the personal and financial details of the defendants.
The court also rejected certain requests from Ripple to seal certain information, including details linking Ripple's revenues with XRP sales and the amounts offered to trading platforms.
Ripple has always regarded Hinman's speech as a vital piece of evidence in its legal skirmish with the SEC, which has accused Ripple of violating U.S. securities laws through the sale of its XRP tokens.
Contrary to the SEC's arguments, U.S. District Court Judge Analisa Torres ruled in favor of public access, asserting that these documents are “judicial documents” and thus subject to a high presumption of public accessibility. She further pointed out that these documents have the potential to influence the court's ruling on a motion.
Torres also dismissed the SEC's argument that confidentiality was required to maintain "openness and candor" within the SEC, stating that the deliberative process privilege did not apply to these documents as they did not pertain to an agency decision or policy.
However, the court did side with the SEC on some matters, allowing the redaction of the names and identifying details of SEC experts and XRP investor declarants, in addition to the personal and financial details of the defendants.
The court also rejected certain requests from Ripple to seal certain information, including details linking Ripple's revenues with XRP sales and the amounts offered to trading platforms.
Ripple has always regarded Hinman's speech as a vital piece of evidence in its legal skirmish with the SEC, which has accused Ripple of violating U.S. securities laws through the sale of its XRP tokens.
