SEC’s Case Against Ripple Is On the Ropes

In 2018 ex-SEC Director William Hinman, gave a speech stating unequivocally that Ethereum is not a security, prompting the price of the crypto-currency to rise. Ripple’s legal team, which is protecting its client from SEC charges that it is a security, has detected descriptions from the SEC’s privilege log which suggest they may be highly relevant to this case, most notably an email chain “concerning discussions with a third party whom Defendants understand received guidance from the SEC to analyze its digital asset under the framework set forth in Director William Hinman’s June 14, 2018 speech.” According to the defense, the document could prove that Hinman’s speech was not merely a personal opinion, but the SEC’s official policy. On October 15 Judge Sarah Netburn ruled in favor of Ripple’s request and will be adding the documents and the email chain to the in-camera review. The SEC’s response is due no later than October 22, 2021. If the defense prevails, the SEC’s case looks bleak.