Started by Bitcoin, May 16, 2022, 05:55 am
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Ripple (XRP) rallied to $0.439217 Friday from $0.377384 on Thursday in the face of an ongoing Securities and Exchange Commission lawsuit following the comments of William Hinman, former SEC Corporate Finance director.
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A judge has granted the request of SEC to file a reply concerning the case against Ripple Lab. The case was ignited by the speech of Hinman, stating that Ethereum is not a security.
Emails recovered as evidence strengthened claims that Hinman had some conflict of interest connected to those comments.
In 2018, Hinman’s speech included this statement:
Hinman’s speech stated that Ethereum is not a security which insofar is tagged as an opinion based on his own understanding of Ether and the Ethereum Network.
More so, the decentralized nature, and Ether transactions and sales are not secure, according to his personal knowledge and understanding.
On the other hand, Hinman attested that there are four criteria barring the rationale rendered by SEC, stating that said communications made in 2018 won't fall under the attorney-client privilege.
In addition, communications made by Hinman isn't confidential information. Further, if in case SEC discovers any other information that can be protected, the only person who can claim that is Hinman.
Ripple's defense on this case is that XRP's purpose can't classify the coin as a security. SEC has no power or authority over Ripple considering that XRP's function is as a medium of exchange.
Further, Ripple states that the currency is utilized as an intermediary intended for remittance and not a security.
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Ripple also defended that SEC did not clarify the classification of digital assets which failed to provide Ripple Labs timely guidance or warning as to how the current laws apply to XRP.
However, SEC contested that Ripple has in fact obtained advice from them in 2012 identifying its product as an investment which requires SEC regulation.
Hinman’s speech, however, further strengthens Ripple's defense as it implied that if Ether or XRP was bought to participate in a decentralized platform and not for earning from trading activity, then it's definitely not a security.
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