Ripple Insists on Summoning Ex-SEC Head William Hinman to Court
The Ripple Labs Inc. in an official letter to the court asked for permission on July 19 to interrogate the former head of the financial department at the US Securities and Exchange Commission (SEC) William Hinman.
As you know, in December 2020, the SEC filed a lawsuit against Ripple for non-compliance with the securities law.
However, Ripple said it received no “advance notice” that XRP was listed as a security. According to the fintech company, this case is the first in judicial practice. Ripple also claims that the Commission has never notified the company of a violation of the law due to XRP sales.
Therefore, Ripple petitioned to give them access to the internal documents of the Commission regarding virtual assets. The information was requested in order to clarify the SEC’s position on digital assets, in order to understand where XRP ranks in it.
The company hoped to find similarities in materials about BTC, ETH and XRP as evidence that their token is not a security.
The main reason why Ripple is pushing for testimony by ex-head of the finance department at the US Securities and Exchange Commission (SEC), William Hinman, is his statement in June 2018. Then, during the Yahoo All Markets summit, Hinman highlighted the two most popular cryptocurrencies and stated that they are not securities.
Initially, Hinman was supposed to testify as early as June 30th. But then the Commission blocked Ripple’s request, explaining that the company could not justify the need to interrogate him.
Also, the Commission not so long ago requested the court to postpone the trial. On the other hand, Ripple demanded to speed up the process, since the company loses a lot of money due to protracted litigation. But, unfortunately for Ripple, the court granted the SEC’s request to postpone the hearing for 60 days. According to the (court’s) order, the hearing will take place on October 15 instead of August 31.