Ripple has finally received the long-sought documents and email messages from the Securities and Exchange Commission(SEC). The XRP crypto founders now find themselves as the defendants in the long-running legal battle with the regulatory board over its declaration that XRP is trading as an unregistered security.
The revelations came on Thursday when Ripple’s general counsel, Stuart Alderoty, broke the news on Twitter. Alterity says obtaining the documents is a step toward victory in the eighteen-month battle. The documents involve William Hinman, the former SEC director, regarding the speech delivered in 2018.
During the speech, Hinman declared that Ethereum was sufficiently decentralized and, therefore, not subject to federal securities regulation. Since then, Hinman’s remarks have led to hot debates over crypto regulations. He also set a foundation for SEC to build a lawsuit against Ripple in 2020, asserting that XRP is unregistered security.
Court Gives Ripple Access to SEC Documents
In September 2022, a federal district judge overruled the SEC’s attempts to deny Ripple access to the documents, which the firm believes will reveal the agency’s internal deliberations that led to declarations that favor Ethereum at the expense of alternatives like XRP. Initially, Ripple had won the right to request the document in January.
Part of industry watchers think the documents would not strengthen Ripple’s case significantly, but Alderoty believes those assumptions are wrong. He adds that while these documents remain confidential for now, they were well worth the fight to obtain them, as he is now more optimistic about Ripple’s legal arguments.
Ripple CEO Slams SEC Over “Shameful Behaviors”
Ripple CEO Brad Galinghouse responded to his general counsel’s announcement as they celebrated the firm’s 10th anniversary. He slammed the SEC by saying people should not believe the agency when it claims to care about clarity, transparency, and disclosure. Galinghouse cites SEC’s shameful behaviors will be open when the truth comes out.
Even though obtaining access to documents revolving around Hinman’s speech might give important insight into his thought process and that of other officials at the SEC, Ripple lawyers also expect to hear from Hinman directly, having won the case to remove him from office in 2021.