A crypto influencer discusses how Judge Torres may apply Hinman’s Ethereum analysis to XRP in the Ripple-SEC case as the legal battle nears its end.
As the end of the legal battle between Ripple and the Securities and Exchange Commission (SEC) draws nearer, crypto sleuth and XRP community influencer Mr. Huber has taken to Twitter to discuss the potential implications of Bill Hinman’s Ethereum (ETH) analysis on XRP.
In a recent tweet, Mr. Huber highlighted the significance of Judge Torres’ decision to apply Hinman’s analysis to XRP following the recent public disclosure of the document
Well: Two things –
If Torres finds Hinman lawfully excluded Ethereum from the securities rule, then she would have to apply Hinman's analysis to XRP as well. And Hinman didn't even consider the size of the holdings or the transparency of them. -> Not sold as Securities, No… https://t.co/pU0ENTzlBl— Mr. Huber??? (@Leerzeit) June 26, 2023
Case One for XRP
The first point raised by Mr. Huber emphasized that if Judge Torres finds that William Hinman, the former Director of the SEC’s Division of Corporation Finance, lawfully excluded Ethereum from the securities rule, she would likely have to apply the same analysis to XRP.
Like Ethereum, this would imply that XRP would not be classified as a security, thereby eliminating the possibility of penalties. Mr. Huber further highlights that Hinman’s analysis did not consider the size of holdings or their transparency, indicating that XRP’s status as a non-security could be strengthened.
Alternative Scenario
However, in his second point, Mr. Huber presents an alternative scenario. If Judge Torres concludes that Hinman did not lawfully exclude Ethereum from the securities rule but acknowledges that Hinman’s statements could reasonably lead one to believe XRP falls under the same rules, a different outcome could emerge.
In this case, XRP might be considered a security, potentially subject to penalties. Nonetheless, Mr. Huber notes that the lack of fair notice and penalty could be relevant factors.
Notably, Mr. Huber’s tweet responded to a crypto enthusiast who questioned the relevance of the Hinman analysis to the SEC evidence against Ripple.
In a follow-up tweet, he clarified that the XRP community opposes Hinman’s arguments because Ripple’s argument, which focuses on the absence of post-sale obligations, is legally more robust and verifiable.
Some people act like they don't understand the XRP community why we're not in favor of Hinman's arguments. They can't see how Ripple's Blue Sky argument is many times legally more sound than Hinman's completely arbitrary construct of "decentralization". No post-sale obligations… https://t.co/rrOqqpbLBp
— Mr. Huber??? (@Leerzeit) June 26, 2023
The crypto influencer further criticized Hinman’s concept of ‘decentralization’ as arbitrary and questioned its effectiveness thus far.