Ripple Experiences Major Win as Netburn Demands for an Explanation
Judge Sarah Netburn gave Ripple another win in the ongoing case between the US Securities and Exchange Commission. Sarah Netburn will provide her decisive ruling by September 28, 2021.
Netburn’s decision came from the company’s request to view the internal documents from the Securities and Exchange Commission. In line with this request, the SEC sent a response that requested the court to deny the motion to “compel the production of confidential details of trading by individual SEC employees”.
In line with these events, the judge decided to read through the internal documents through an on-camera examination without the Ripple legal team.
These documents talk about the Commissions’ internal discussions about Ripple before the actual legal case.
Furthermore, the company also requested the court to disclose the digital assets of the employees in the Securities and Exchange Commission. The lawyers intend to use these disclosures to prove that the comments made by former SEC Director William Hinman stated that Ethereum was a non-securities asset.
William Hinman’s public admission provided Ripple the much-needed win by diluting SEC’s claim to the Hinman deposition.
Thus, the question now lies whether XRP should be classified as a securities asset since Hinman claimed that Ethereum was not a securities asset. More importantly, the case relies on whether the SEC gave the company reasonable notice to classify the cryptocurrency as a securities asset.
The transcript of the Hinman deposition showed that Hinman met with Ripple executives in 2020 to strategize ways on how XRP can be regulatorily compliant.
