The conflict between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs rages on as the SEC contests a significant court decision.
James K. Filan, a cryptocurrency lawyer, covering the SEC vs. Ripple case since December 2020, posted a copy of an SEC application to prevent drafts of a speech delivered by the former director of the organization, William Hinman, from being made public.
in a letter to US District Judge Analisa Torres on the representation of the SEC, Attorney Ladan F. Stewart needs permission to submit two papers in opposition to the previous lawsuit by Judge Sarah Netburn requiring the SEC to provide a copy of Hinman’s 2018 speech. In a speech from 2018, Hinman asserted that Ethereum (ETH), the most popular platform for smart contracts, was not a security.
Ripple vs. SEC
The SEC first objected to Federal Judge Sarah Netburn’s order earlier this year to provide correspondence relating to the speech. Despite clarifying, Netburn dismissed the appeal and mandated that the SEC provide the desired drafts and communications by the end of April. The SEC then asked for more time to oppose Netburn’s decision to dismiss their appeal.
The regulator asserted that the attorney-client privilege shielded the Hinman records. Nevertheless, Netburn refuted that line of thinking in her most recent order.
“The SEC is embracing its litigation roles to further its intended goal, not out of faithful allegiance to the law. This is evidenced by the hypocrisy in its arguments to the Court that, on the one hand, the Speech is not crucial to the market’s understanding of how or whether the SEC will regulate cryptocurrencies. On the other hand, Hinman sought and obtained legal advice from SEC counsel in drafting his Speech.”
Just last week, Judge Netburn rejected the SEC’s prior attempt to keep the speech’s contents secret, giving Ripple victory in the most recent of several battles involving the speech.
The SEC first sued Ripple in late 2020 because it offered the digital currency XRP is unregistered security.