The SEC alleged that Ripple and all holders of XRP should have known for the last seven years that XRP was a security when the SEC itself repeatedly said it didn’t know it until the day it filed the lawsuit in December 2020.”

At the time of writing, the online petition has collected about 1,600 signatures out of its goal of 2,500.

As previously reported by Cointelegraph, the SEC filed a lawsuit against Ripple Labs, as well as its CEO Brad Garlinghouse and co-founder Christian Larsen on Dec. 22, 2020, alleging that XRP was a “$1.3 billion unregistered securities offering.”

Amid the ongoing legal battle, a U.S. court granted Ripple Labs access to the SEC’s documents on defining crypto assets as securities in early April.

Earlier this week, the price of XRP crossed the $1 mark for the first time since March 2018.


Hinman’s opinion, but the opinion of the Division of Corporation Finance, so they were covered by attorney-client privilege and should remain confidential. The SEC’s evolving characterization of Hinman’s speech has irked Netburn, who ruled Tuesday that the SEC must turn over the materials to the court, denying its request for attorney-client privilege and making an unusually harsh assessment of the agency’s motives.

“The hypocrisy in arguing to the court, on the one hand, that the speech is not relevant to the market’s understanding of how or whether the SEC will regulate cryptocurrency and, on the other hand, that Hinman sought and obtained legal advice from SEC counsel in drafting his speech, suggests that the SEC is adopting its litigation positions to further its desired goal and not out of a faithful allegiance to the law,” Netburn said.

An SEC spokesman had no comment.

  • Judge Sarah Netburn denied the SEC’s motion to protect Hinman’s internal notes and emails under attorney-client privilege.
  • After the regulator’s motion was denied, whether the SEC will avoid producing the documents remains to be seen.
  • Analysts believe the XRP price rally could continue if the altcoin crosses the $0.48 level.
  • Judge Sarah Netburn ruled against the SEC’s motion to protect the William Hinman documents. This is considered a decisive win in the latest SEC v. Ripple ruling. Analysts believe the XRP price could continue its uptrend if it crosses the $0.48 level.

    Also read:SEC v.

    SEC sued Ripple Labs, and its executives Brad Garlinghouse and Christian Larsen.

    The issue centred on allegations that the company raised more than $1.3bn “through an unregistered, ongoing digital asset securities offering.”

    This time US District Court Judge Analisa Torres ruled that the SEC had plausibly argued that the XRP digital coin amounted to the unregistered sale of securities.

    XRP to US dollar

    Celsius Network

    Celsius has a $1.2b hole in its balance sheet, according to a recent court filing from the crypto lender’s advisory partner Kirkland & Ellis.

    The crypto lender filed for voluntary bankruptcy in the US citing ‘extreme’ market conditions, leaving its 1.7 million customers unable to redeem their assets.

    As a result the network’s native token CEL saw a series of wild price gyrations as investors confidence ebbed and waned.

    XRP lawsuit is now again in favour of San Francisco-based fintech company Ripple because of the latest decision of judge Netburn.

    Ripple is a San Francisco-based fintech firm that provides international payment services to small and big businesses. The core business operations of this company operates in the United States. In December 2020, The US Securities regulatory body initiated a lawsuit against Ripple, claiming that the native token of Ripple is a unregistered security.

    In this latest ruling of the Ripple vs US Securities and Exchange Commission (SEC) legal fight, court judge Sarah Netburn rejected the SEC’s attorney-client privilege claims in a blow to the regulatory agency.
    In this way, the XRP lawsuit concluded that “The documents must be produced.

    In response to this statement of Judge Netburn, a famous attorney, James K.

    SEC.”

    Hinman warned by SEC of conflicting Ethereum interest

    The report shows the SEC ethics office cautioned Hinman to avoid any matters that might affect Simpson Thatcher while he still had financial interest in the law firm.

    • SEC ethics official Shira Pavis Minton personally warned Hinman to avoid any communication with the firm in an email exchange.
    • Minton also asked about any financial ties between the entity and Hinman.
    • To qualify for tax exemptions, Hinman said he would divest once he started his job at the SEC.

    Empower Oversight claims that Hinman continued to meet with Simpson Thatcher during his tenure, despite the SEC ethics office’s warnings.

    It further alleges that Hinman contributed to the public perception that the SEC did not equally apply clear rules when evaluating cryptocurrencies.

    Orders requiring the SEC to turn over internal documents related to a 2018 speech on digital assets aren’t just wrong on the law, they are likely to have a chilling affect on policy deliberations throughout the federal government, the agency says.

    The Securities and Exchange Commission is fighting to keep Ripple Labs Inc. from getting documents related to the speech by William Hinman, then the Director of the Division of Corporate Finance.

    Magistrate Judge Sarah Netburn rejected the agency’s objections based on relevance and the deliberative process privilege in a series of discovery orders this spring.

    Hinman met with Josh Bonnie, a partner at Simpson Thacher, at least three times after that warning. Hinman also met with the co-founders and investors in Ethereum ahead of a market-moving speech he gave in 2018 declaring the digital asset Ether to not be a security.

    — Empower Oversight (@EMPOWR_us) April 8, 2022

    “The documents show that the SEC ethics office cautioned former SEC official William Hinman that he had a direct financial interest in Simpson Thacher, yet Hinman continued to meet with the firm in spite of these warnings.

    Hinman met with Josh Bonnie, a partner at Simpson Thacher, at least three times after that warning.

    “Although Hinman and the SEC admit that agency staff discussed his speech, it appears that this speech was ‘merely peripheral to actual policy formation,’ and not an ‘essential link’ in the SEC’s deliberative process with respect to Ether,” she added.

    Hinman’s speech, which he made while he was the director of Corporate Finance at the SEC, was taken by many in the digital currency market as an official SEC position. The then-SEC chairman Jay Clayton even referred to it as proof that the SEC was offering guidance to the market during an interview months later. However, Hinman turned around last year and claimed that he was just giving his take on the market.

    Judge Netburn turned down Ripple’s request to access other documents, including notes between the SEC and Ripple and discussions it held with other government agencies on digital currencies.

    The SEC vs.

    Ripple: Defendants and regulator in conflict over expert reports

    Judge Netburn denied SEC the motion to keep Hinman documents protected

    While investors continue to weigh in on the US inflation data and the tightening of the Federal Reserve’s monetary policy, the XRP price broke into an uptrend. Experts believe another spike in US inflation could negatively influence the XRP price.

    Defence attorney James Filan recently shared a court ruling on the SEC’s motion to protect William Hinman’s speech and related documents, protected under client-attorney privilege. Proponents consider Judge Sarah Netburn’s ruling a victory for XRP holders.

    To quote the ruling:

    Magistrate judge Netburn denies the SEC’s attorney-client privilege claims.

    The predominant purpose of the communications was not to provide legal advice.

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