SEC vs Ripple: Deaton Says 63 Emails and 52 Drafts in Hinman Speech Is a lot for a “Personal Opinion”

Attorney Deaton comments on Hinman’s controversial speech, arguing against the SEC’s claims that the speech represented Hinman’s personal opinion.

Attorney John Deaton, CryptoLaw founder and pro-XRP lawyer, commented on the 2018 controversial speech by former director of SEC’s Corporation Finance William Hinman, challenging the SEC’s argument that the speech was merely Hinman’s opinion.

In a tweet yesterday, Deaton stressed that Hinman’s controversial speech has a lot of input from top SEC officials to be called his personal opinion. According to the pro-XRP lawyer, the speech has a total of 63 emails and 52 drafts from top SEC officials. 

“There were 63 emails and 52 unique Drafts of the Hinman Speech. “FIFTY-TWO. ” That’s a lot of drafts and input for a personal opinion,’ the attorney remarked.

There were 63 emails and 52 unique Drafts of the Hinman Speech. “FIFTY-TWO”

That’s a lot drafts and input for a personal opinion. https://t.co/bmCo5w1tj4

— John E Deaton (@JohnEDeaton1) May 23, 2023

Deaton made this known while commenting on his July 2022 tweet about the email chain of the document. Last year, Deaton disclosed that only the Ethics Office and Ethics Chief Danae Serrano are not on the email chain of Hinman’s docs. 

Former SEC Lawyer & Deaton Debate 

Meanwhile, Deaton’s latest tweet sparked reactions from crypto community members. Former SEC lawyer Marc Fagel also commented on the post. 

Fagel reminded Deaton of an existing concept at the Securities and Exchange Commission. According to Fagel, any statement by an SEC official that was not an enforcement action or a rulemaking voted on by five commissioners at the agency is always considered to represent the speaker’s views alone. 

He asked why people are still struggling to understand SEC’s position on the matter. Responding to the comment, Deaton emphasized that people actually understand the concept.

The SEC’s lawyers are ? transactional in their arguments and flip flip constantly. There’s a reason Judge Netburn called them out and stated that they lack an allegiance to the law.

— John E Deaton (@JohnEDeaton1) May 23, 2023

However, he argued that SEC is always transactional in its arguments, which prompted Judge Sarah Netburn to call them out. The US District Judge previously accused the commission’s lawyers of lacking faithful allegiance to the law.

Hinman’s Controversial Speech

Deaton’s latest remarks highlight the controversy surrounding Hinman’s 2018 Yahoo Finance All Markets Summit speech. Notably, Hinman declared Ethereum and Bitcoin as non-securities during the speech. The statement garnered attention from the crypto community after Ripple requested the documents leading to the formulation of the speech.

Popularly referred to as Hinman’s docs, the document involves internal deliberations at the SEC around the speech. Recall that after Ripple’s reference to the document, the SEC claimed the speech reflected Hinman’s opinion, not the commission’s. Deaton has continued to challenge this.

The SEC later changed its argument after Judge Sarah Netburn denied the agency’s motion to seal the docs.

Will Hinman’s Docs Prompt a Settlement?

It bears mentioning that Judge Analisa Torres recently ordered the unsealing of Hinman’s documents in her recent ruling, as previously reported by The Crypto Basic.

Following the order, Ripple CEO Brad Garlinghouse said the company’s lawyers would ensure that Hinman’s docs are released to the public unredacted. As reported, the speech will be released by June 13, 2023.

However, there is ongoing speculation that Hinman’s docs will never see the light of day because the SEC and Ripple might settle before the deadline. At press time, it remains unclear whether the parties are discussing the terms of a possible settlement.