The judge rules and Ripple wins the round. The SEC official who ruled in 2018 that Ethereum was not a security, unlike XRP, may be compelled to testify in court.
This is yet another round of victory for Ripple in his legal battle against the US Stock Exchange Constable. Judge Sarah Netburn has just ruled in favor of the XRP issuer against the SEC.
In June 2018, an authority official, William Hinman, spoke on the legal status of Ethereum. The former director of the SEC’s Corporate Finance Division then believed that the token was not a security, a security.
Ether is not a title. Like XRP?
Based on his understanding of the Ethereum network and its decentralized structure, he felt that “ current Ether offers and sales are not corporate actions “. There was nothing trivial about that sentence.
With this statement, Hinman therefore considered that the regulation of ETH was outside the purview of the SEC. However, this position now embarrasses the regulator, who wanted to block the road to a deposition from its former leader.
The court decides otherwise. Clearly, Ripple can demand this influential cadre of his adversaries in court to testify. The firm had already obtained from justice that the SEC transmits internal documents to it.
The creator of XRP is eagerly looking for evidence to support his line of defense. The policeman of the stock market believes that Bitoin and Ether are not securities. But on the basis of what criteria?
A trench warfare between SEC and Ripple
Ripple seeks to find out in order to demonstrate that XRP also meets these conditions, and therefore should not be considered a security. Thanks to William Hinman’s hearing, the blockchain firm will be able to require him to provide the reasons that led him to decide the status of Ether.
By gaining the right to dig into the regulator’s internal secrets, Ripple also turns the tables, forcing the complainant to defend himself. Yet it is the XRP issuer that is being prosecuted in this case.
The costs are heavy on the company and its founders. The SEC accuses XRP of being a security, not a cryptocurrency. But in addition, it believes that its leaders have manipulated prices in order to maximize the profit from their token transfers.