Massive Win For Ripple as SEC Must Surrender Hinman’s Emails to Ripple.
SEC’s motion for partial reconsideration of the DPP ruling was denied.
In what is considered a major win for Ripple, Judge Sarah Netburn has denied the Securities and Exchange Commission’s request for partial reconsideration of the Deliberative Process Privilege (DPP) ruling.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The Court has denied the SEC's Motion for Reconsideration of the DPP Ruling and granted the SEC's request for clarification of that ruling.https://t.co/yXNmx67zpQ
— James K. Filan 🇺🇸🇮🇪90k+ (beware of imposters) (@FilanLaw) April 11, 2022
According to the court’s decision, following the SEC’s request for partial reconsideration, the securities agency has not identified any intervening changes in controlling laws or decisions that were unaddressed by the court’s January 13, 2022 order.
The SEC noted that William Hinman’s 2018 speech, which was initially intended to communicate the Finance Department’s approach toward regulating digital currency, was inconsistent with the former Director of Finance’s previous position that the speech reflected his personal views.
“The SEC seeks to have it both ways, but the Speech was either intended to reflect agency policy or it was not. Having insisted that it reflected Hinman’s personal views, the SEC cannot now reject its own position,” an excerpt of the ruling read.
With the latest ruling from Judge Netburn, the SEC has a period of 14 days to file an objection to Judge Analisa Torres.
Recall that the SEC was ordered in a January 13, 2022 ruling to provide Ripple an email with a draft of former director Hinman’s 2018 speech, where he talked about the regulatory status of Ethereum (ETH).
The speech, according to the blockchain company, provides answers to the argument on whether Ripple’s XRP is a security, the main basis of the lawsuit.
Throughout the lawsuit, Ripple has argued that there was little to no regulatory guidance to determine what offering falls under the securities regulation.
Based on this shortcoming, the blockchain company had requested documents from the SEC containing communications from the SEC’s staff, which detail relevant securities policies.
However, the SEC has refused to turn over the documents, saying they represent the personal opinions of its staff and cannot be used for public guidance.
It is worth noting that while Judge Netburn has denied the SEC’s motion for partial reconsideration, the court granted the agency’s request for clarification of the June 13, 2022 ruling.
Attorney Jeremy Hogan, a partner at Hogan & Hogan law firm, noted that the order is “disturbing” given the fact that Judge Netburn allowed the SEC to redact parts of the documents that discussed separate agency deliberations.
“My concern: it’s those parts of the emails that are most damaging to the SEC. How will we know? If the SEC appeals to Judge Torres, they are in trouble,” attorney Hogan said.
The Order is a little concerning because she allows redaction of parts which discussed "separate agency deliberations."
My concern: it's those parts of the emails that are most damaging to the SEC. How will we know? If the SEC appeals up to Judge Torres, they are in trouble. pic.twitter.com/XcjmxaQPJD
— Jeremy Hogan (@attorneyjeremy1) April 11, 2022