SEC’s motives questioned in Ripple case due to Hinman documents.
The Hinman documents, recently released in the ongoing legal dispute between Ripple and the United States Securities and Exchange Commission (SEC), have revealed internal conflicts within the SEC and raised suspicions about its motives. These documents relate to the agency’s internal communications about a speech given by former director William Hinman in 2018. During the speech, Hinman stated that Ether (ETH), one of the largest cryptocurrencies, should not be classified as a security.
Crypto lawyer and founder of Hodl Law, Fred Rispoli, shared his thoughts on the Hinman documents in an interview with Cointelegraph. According to Rispoli, the documents demonstrate an agency more interested in extending its jurisdiction than fulfilling its primary mission of safeguarding U.S. investors. Additionally, Rispoli believes that while cryptocurrencies may possess certain security attributes, their fundamental characteristics set them apart from traditional securities. Hence, regulation is necessary but should not be entrusted solely to “power-hungry” securities regulators.
The release of the Hinman documents has opened up a Pandora’s box of potential consequences for Ripple and the wider crypto industry. Rispoli speculates that additional documents may be requested that shed light on the events surrounding Hinman’s speech, as well as highlight the potential involvement of various entities and individuals in shaping the narrative. Furthermore, the Hinman documents are expected to be useful in ongoing or future legal battles within the crypto industry, particularly in cases involving a token issued on the Ethereum Network.
Rispoli’s law firm, Hodl Law, has sued the SEC in the U.S. District Court for the Southern District of California to establish that Ether and the Ethereum Network “are not securities according to federal law.” The SEC has attempted to dismiss the case, contending that it is not obligated to disclose its stance to the public. However, Hodl Law intends to present the Hinman documents to the judge to highlight the SEC’s alleged disregard for good faith and its departure from legal obligations.
