SEC vs. Ripple: The Court Made a New Decision

The U.S. Securities and Exchange Commission (SEC) is required to provide Ripple with an email with a draft speech by William Hinman, former director of corporate finance at the regulator, in which he stated that Ethereum is not a security.

According to lawyer James Filan, this decision was made by Justice of the Peace Sarah Netburn.

Lawyers were talking about Hinman’s speech at the Yahoo Finance conference in June 2018, when a former official said that for various reasons, Bitcoin and Ethereum are not securities.

For several months now, the SEC and Ripple have been arguing about what information should be disclosed as part of the lawsuit. Lawyers for the fintech company demanded a series of documents, including internal SEC communications on the content of speeches and other public communications.

Commission officials insisted that these documents were subject to deliberative process privileges (DPP). This is a principle of law that allows the regulator, on the grounds of confidentiality, to refuse to disclose papers or testify.

In her ruling, the judge agreed that certain documents were indeed protected by the DPP. However, this principle cannot be applied to other recordings, in particular, to an email with Hinman’s speech.

Netburn also ruled that the SEC must provide Ripple with certain records of meetings between agency employees and third parties. For example, the company will have access to a transcript of a meeting between officials and ConsenSys in 2016.

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