LONDON, United Kingdom – After the reply sent by the Ripple Labs team regarding the Securities and Exchange Commission’s request for attorney-client privilege over Hinman’s documents, the XRP’s price rallied from $0.37 on Thursday to $0.43 on Friday. Another victory for the Ripple team to stash in their bags.
The SEC is set to send their reply on May 18th to Ripple’s statement addressed to Judge Sarah Netburn. Meanwhile, William Hinman remains a central figure in the unfolding of this case.
If you will recall, William Hinman is the former Director of Finance of the Securities and Exchange Commission. During his stint as so, in 2018, he made a statement that would later be crucial for the lawsuit that the SEC is filing against the Ripple Labs team. According to the former director, Ether and all its network and assets are not considered securities according to his understanding. This excerpt from his statement is what the Ripple team is holding on to, arguing that the XRP should also be treated the same way if it is the case.
William Hinman also attested to four criteria that do not support the defence raised by the Securities and Exchange Commission, which also states that any communication he made during 2018 should not fall under the attorney-client privilege.
The question is, did XRP violate any law, including the 1933 Securities Act? Ripple claims that its altcoin cannot be considered a security, just like Ether and Bitcoin, as it functions as a medium of exchange. Moreover, Ripple claims that the altcoin is used as an intermediary, purposed for remittance.
The Ripple Defense team also added that if the SEC continues to persecute them, they should have given clarifications on the scope of digital assets. The defendants did not have to provide them with enough guidance on how the rules and regulations apply to XRP.