In a tiny triumph for Ripple Labs, the Securities and Exchange Commission, or SEC, has agreed to turn over internal correspondence.
Ripple Labs, the custodians of the XRP token, has scored a little victory in its long-running lawsuit with the SEC, acquiring vital documents that may aid in the regulator’s investigation.
Ripple has obtained what has become known as the Hinman documents — internal SEC drafts and emails relating to a former director’s speech more than four years ago — after 18 months and six court orders.
The speech, given by William Hinman, Director of the SEC’s Division of Corporation Finance at the time, was important because it appeared to declare that ether was not regarded as a security by the agency.
Ripple’s general counsel, Stuart Alderoty, tweeted on Thursday that while the documents linked to the 2018 Yahoo Finance All Markets Summit speech are still classified due to the regulator’s request, “it was well worth the effort to get them.”
Ripple has sought the records through discovery on multiple occasions, while the SEC has attempted to withhold them at least three times. First, in February, and then again in April, Magistrate Judge Sarah Netburn of the Southern District of New York overruled the SEC’s position twice.
Last month, Judge Analisa Torres ruled against the SEC’s attempts to suppress the records for the third time. The price of XRP increased by more than 9% as a result of the announcement. XRP was last seen trading at $0.44, down 1.8% in the last 24 hours.
While the case is ongoing, the outcome of the legal battle between the two might have far-reaching implications for the sector, as it could set precedent for how cryptocurrency is regulated and handled as either a security or a commodity.
