A U.S. court has ruled in favor of Ripple, ordering the regulatory body to hand over information supporting the company’s stance in the continuing legal fight.
Former SEC Director William Hinman demanded the materials be released and they were. The papers are essential to Ripple’s case.
News accounts state that Manhattan federal judge Analisa Torres ruled against the regulator’s bid to seal records pertaining to former SEC staffer William Hinman. On Thursday, counsel for Ripple James K. Filan tweeted about the judge’s ruling.
Emails relating to a lecture given by Hinman, a former SEC division director, in which he stated that Ethereum’s ETH cryptocurrency cannot be classed as a security owing to its decentralized structure are at the center of the controversy.
The Commission wanted to keep the emails hidden, claiming that the former director’s opinions were not representative of the organization. Moreover, the financial regulator had used attorney-client privilege to shield the confidential papers from disclosure and prohibit their use as evidence in a legal proceeding.
Magistrate Judge Sarah Netburn determined in prior proceedings that Hinman’s internal speech papers did not constitute agency records since they conveyed the former official’s personal beliefs. For this reason, they do not serve as the “essential link in the agency’s determinations,” as the SEC claimed they did.
According to Netburn, the email was not covered by the deliberative process privilege, thus he dismissed the SEC’s claim. On Thursday, Judge Torres’ judgment overturned the SEC’s objections to Netburn’s previous order since she and Netburn agreed on all points relevant to the materials at hand.
U.Today reports that the court ruled last week that internal speech papers include communications whose principal goal was to evaluate and apply legal concepts.
The price of XRP responded positively to the announcement, indicating that investors saw the news as beneficial. After the judge’s verdict was made public, the price of a Ripple token jumped from US $0.43 to the equivalent of 5 cents. According to information provided by Crypto Markets, XRP has gained 11% during the last 24 hours, and its current price is $0.47 USD.
Filan has tweeted some of his ideas on how to proceed with the case. The attorney said the SEC still has certain procedural cards it may play to postpone the handover of Hinman’s materials.
“To start, they might urge Judge Torres to rethink her decision to reject the SEC’s argument. Second, they might ask her to certify an appeal of the judgment she made today without filing a request for reconsideration “he went into length about it Third, they might file a Petition for Writ of Mandamus with the Court of Appeals.
Filan, though, thinks it’s very improbable that such moves would succeed despite these attempts. He estimated that at most, they’d be able to give the SEC an extra 2-3 months; nevertheless, this would have no effect on how long it would take to get a summary judgment.
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