San Franciscan fintech Ripple Labs is claiming a win in its long-running dispute with the U.S. Securities and Exchange Commission (SEC) after getting hold of internal Hinman files.
Ripple: Hinman files were worth fighting for
According to Ripple General Counsel Stuart Alderoty’s tweet, the company finally got hold of ambiguous Hinman documents after a battle that lasted for “18 months and 6 court orders.” However, he commented everything is still confidential on the SEC’s insistence.
Alderoty said he always believed that Ripple had good arguments, but that he felt better now that he has the physical evidence.
“I’ve always felt good about our legal arguments, and I feel even better now. I always felt bad about the SEC’s tactics, and I feel even worse about them now,” he tweeted.
The documents refer to a 2018 speech by the ex-SEC Division Director William Hinman about the status of Ethereum. Hinman then stated that he firmly believes Ethereum is not a security and Ripple thinks this may be a crucial argument in its fight with the SEC, which tried hard to keep the Hinman files hidden.
Just for a reminder, back in 2012, Ripple Labs created the RippleNet network and a cryptocurrency dubbed XRP that was used to raise funds a year later. The SEC filed a lawsuit against Ripple Labs, alleging that the executives held an initial public offering (IPO) of XRP, which was an unregistered security at the time of raising capital.
Since then, the SEC has insisted that XRP is a security, a traded financial instrument representing ownership in a corporation that has no utility. At the same time, the SEC says Bitcoin is not a security.
Garlinghouse says SEC’s behaviour is shameful
According to the SEC requirements, securities must be registered with the SEC and publicly report financial data in order “to protect investors’ interests while combating fraud”.
Ripple CEO Brad Garlinghouse said the SEC is in no way a “protector of people” adding it wants people 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.”
According to CoinMarketCap, the price of XRP was down 0.84 percent at 11:06 AM CET
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