- Ripple fights for documents that would prove the SEC only deemed Hinman’s speech a personal opinion for XRP’s loss.
- Former SEC top official William Hinman gave a speech declaring that Bitcoin and Ether were not securities.
In its latest tactic in the battle against the US Securities and Exchange Commission (SEC), Ripple has claimed a lack of Deliberative Process Privilege (DPP) for the agency. Notably, a DPP is a common-law principle that protects a government agency from the disclosure of certain information.
Previously, former SEC director William Hinman gave a speech in which he exempted Bitcoin and Ether from being securities. For some years, SEC officials referred to this speech as evidence that the regulator was giving guidance to the industry. However, the SEC later declared the speech a personal opinion and not its official policy. Ripple now seeks to prove the SEC’s backtracking using three documents.
Judge Sarah Netburn, who has been presiding over the SEC v Ripple case, is expected to review the SEC’s documents. Thereafter, she will rule on whether they are actually “privileged” information under the DPP or not.
On top of that, Ripple filed three additional documents considered highly relevant to their defense a week after the aforementioned argument. The documents show an email correspondence between the regulator and a third party. Reportedly, the SEC guided the third party to analyze XRP under a framework brought on by Hinman’s 2018 speech.
Ripple likely to win? Experts think So
According to experts, the document could single-handedly prove the speech was not a personal opinion, but rather the SEC’s official policy on digital assets. Such a revelation could set the foundation for the defendant’s (Ripple) win.
It is not just the Ripple community that awaits such a positive ruling, but also the greater crypto community. The eventual outcome of the case could be used as a major reference point when judging other crypto assets. The entire ecosystem’s growth and future are quite reliant on this case.
As David Gokhshtein, founder of Gokhshtein media tweeted:
Ripple winning would bring clarity to the entire #crypto industry, but we probably shouldn’t talk about that, right?
Based on the above case developments, analysts now have a bullish outlook on XRP. Ripple, a giant payment solutions company, is the digital asset’s largest public holder. Therefore, the case’s outcome would heavily impact the XRP price.
Staying strong despite SEC push back
According to our data, XRP is trading at $1.03 at writing time, an 8.3 percent gain in the day. This price could be a reflection of the wider market gains, following Bitcoin’s (BTC) 10.1 percent gains in the last 24-hours.
Despite major setbacks, Ripple’s defense team asserted that the company had no plans of settling with the regulator. Meanwhile, Ripple has continued to advance its payments solution to Africa and Latin America. Bhutan, an Eastern Himalayas country, also has plans to pilot its CBDC in partnership with Ripple.