Ripple Trial, SEC Hinman Lecture Materials Finally Public

Behind the scenes of the speech revealed

While the dispute between the US Ripple Inc. and the US Securities and Exchange Commission (SEC) continues over the securities issue of the crypto asset (virtual currency) XRP, the lecture materials of the former senior SEC official, which is one of the important focal points, are finally released to the public. was done.

1/ It’s been 5 years since Bill Hinman gave his infamous speech – and through the SEC’s lawsuit against @Ripple (and 7 court orders), we can finally share what happened behind the scenes through the now public emails / drafts of the speech. pic.twitter.com/sx2TpW0TYe

— Stuart Alderoty (@s_alderoty) June 13, 2023

A June 2018 speech by former corporate finance director William Hinman was a landmark for cryptocurrency regulation, stating that “Bitcoin and Ethereum are not securities.” Since Hinman referred to the decentralization of the network as a criterion for judging the securitization of tokens, it was frequently cited by Ripple in trials between Ripple and the SEC.

Ripple has repeatedly asked for the release of internal SEC documents related to this speech to clarify whether Hinman’s views can be construed as the SEC’s official position as a regulator. At that time, the court requested non-disclosure measures. Courts have repeatedly dismissed the motion.

connection:Ripple trial SEC’s Hinman speech nondisclosure petition rejected by court again

In the process of finalizing the draft of the speech, SEC officials raised concerns about some of Hinman’s views, according to public documents.

Ripple Chief Legal Officer Stuart Arderoti said the documents showed Hinman ignored the concerns of SEC officials.

Ripple’s claims

Arderoti points out that the SEC is at fault:

• “In my personal view,” Hinman says, “well-decentralized tokens are not securities.”
• Then-SEC Chairman Jay Clayton publicly referred to this view as guidance.
• Speech continues to be posted on SEC website, but litigation downplays importance of speech

Hinman also ignored the SEC’s head of trading and markets, who pointed out that the scope of the Howie analysis and the definition of securities mentioned in the speech could “lead to greater confusion.” criticized for doing so.

The SEC Advisory Committee also expressed concerns about including a direct reference to Ethereum, but Hinman ended up offering his views on Ethereum. Hinman also planned to meet with Ethereum co-founder Vitalik Buteren to confirm his understanding of how the Ethereum Foundation should operate, according to public documents.

Arderoti argued that “what and who influenced Mr. Hinman, why his concerns were ignored, and why the SEC promoted this speech knowing it would cause chaos” needs to be reinvestigated. there is

Brad Garling, CEO of Ripple, echoed Arderoti’s view, accusing regulators of “unacceptable disruption to the entire industry.”

connection:US lawmakers introduce bill to reorganize SEC and fire Gensler

be the deciding factor in court

Although Ripple’s release of internal documents that have become a good source of criticism of the SEC, some believe that the actual impact on the trial will be limited.

Zero Knowledge Consulting’s Austin Campbell said the release of the documents “is more effective in demonstrating that the SEC’s current actions do not deserve the benefit of the ‘doubtful, get away’ doctrine.” I think,” he said, expressing his view that it would only help shape public opinion.

Delphi Labs General Counsel Gabriel Shapiro says the public documents do not reveal any new information that could help Ripple’s case, making it “like a hamburger without a patty”. bottom.

connection:Summary of the “Ripple Trial” filed by the US SEC (December 2020-April 2023)

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