SEC’s Response to Hinman Speech Controversy Unveiled in Ripple Labs Filing

Significant documents related to William Hinman, the former director of the SEC’s Division of Corporation Finance, have been released in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).

The documents, which were released on June 13, 2023, shed light on the Trading and Markets Department’s comments on Hinman’s 2018 speech, in which he expressed the view that bitcoin (BTC) and ether (ETH) were not securities.

The comments from the Trading and Markets Department emphasized their support for the speech but raised concerns about making blanket statements regarding ether’s classification.

The release of these documents comes after Ripple Labs’ long-standing request to obtain them. Ripple Labs has cited Hinman’s remarks in their defense, arguing that they contradict the SEC’s claim about XRP’s classification.

Ripple CEO Brad Garlinghouse expressed anticipation for the release of the documents, suggesting their potential significance. He tweeted that the documents “shed light on how the SEC views certain digital assets” and that they “will be helpful in our defense.”

The public availability of the Hinman documents may ignite debates about the classification of cryptocurrencies as securities, especially during a time when the SEC has filed lawsuits against prominent exchanges like Coinbase and Binance.

These developments could have far-reaching implications for the industry, as regulatory clarity is sought amidst legal challenges.

Besides the release of the Hinman documents, other significant events are unfolding in the crypto industry. A federal court hearing is scheduled for the SEC’s motion to seize Binance’s assets, and the SEC is expected to respond to a rulemaking petition from Coinbase.