YEREVAN (CoinChapter.com) – The Securities and Exchange Commission (SEC) lawsuit against crypto startup Ripple, involving allegedly illegal XRP sales, drags on with more motions filed by the opposing sides.
In the latest development, SEC has filed a motion to seal several documents related to the agency’s request for summary judgment on Dec 22. The first category included “witness names and other identifying information.” Other categories refer to “personal and financial information” and “internal deliberations of SEC officials.”
SEC vs. Ripple flashback
SEC filed the lawsuit against Ripple in Dec 2020, accusing Ripple, its CEO Brad Garlinghouse and former CEO Chris Larsen of securities fraud. The agency claimed that Ripple’s initial coin offering of XRP tokens violated US securities laws. Thus, all XRP sales after that also fall in the same category of “unregistered securities sales.”
“Internal deliberations of SEC officials” are essential to the case
Sealing the first two groups of documents does appear logical. However, the “internal deliberations of SEC officials” could be pivotal for the agency’s public image. Furthermore, the Hinman Speech documents also fall under the said category.
Hinman Speech documents fall under the category.
As CoinChapter reported earlier, the Ripple defense focused on that a former SEC official William H. Hinman declared Ethereum and Bitcoin tokens were NOT securities. Thus, the developments in the case have affected the XRP news ever since.
In his June 2018 speech, Hinman voiced his position on defining digital assets.
Putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.
said the former official.
Additionally, several documents related to Hinman himself, his deposition, and expert consults were provided to him at the time. The SEC argues that the documents should remain out of public view.
Will the documents remain out of the limelight?
The SEC respectfully maintains that the Hinman Speech Documents are protected by these privileges. But if these documents were to become part of the public record, the SEC would be foreclosed from making any such argument in the future, which would be highly prejudicial to the SEC.
read the Motion.
Notably, the SEC has already filed the documents in question. The said motion solely refers to the issue of making public information knowledge. As mentioned in the motion, the Court has found that the Hinman Speech Documents “are not directly relevant to any claims or defenses in this case.” The agency’s position claims that “these documents cannot have any relevance to the summary judgment motions.”
Also read: Crypto whales accumulate XRP as the Ripple-SEC case nears end.
Is SEC vs. Ripple close to a settlement?
As CoinChapter reported in mid-December, the rumors of the close settlement in the case intensified. Meanwhile, the biggest argument wasn’t Ripple’s defense advantage but rather SEC’s lack of credibility. On Dec 14, Fortune published a “scathing” piece on the agency’s Chair Gary Gensler and how he “botched” crypto regulation.
As criticism of Gensler mounts, the image-conscious SEC chair is pushing back hard. He has finagled softball interviews with sympathetic press outlets like the New York Times and Politico in a bid to recast his incompetence as success.
read the accusation.
Moreover, Gensler faced accusations of mishandling the FTX implosion and not stopping the process when CEO Sam Bankman-Fried met with him.
James K. Filan’s prediction
James K. Filan, an attorney who often reports the developments in the case, made a prediction for the near future. According to the expert, Judge Torres “will not reference” the Hinman documents in the upcoming rulings. However, he is sure that “the SEC will redact those references as they have done in the past.”
I also don’t think that Judge Torres will rule on sealing issues soon after January 9 because it’s probably isn’t how Judge Torres is going to approach the remainder of this case.
added the expert.
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The post Ripple XRP Update: SEC Files Motion to Seal Part of Summary Judgment Documents appeared first on CoinChapter.