On June 12, Ripple CEO Brad Garlinghouse provided a tantalizing hint regarding the highly anticipated unsealing of the Hinman documents. These documents are expected to shed light on internal discussions within the Securities and Exchange Commission (SEC) and could potentially sway the ongoing court battle in Ripple’s favor.
Was the 18-month struggle, worth it?
The unsealing of the Hinman documents will happen today at 2 pm, on this Garlinghouse expressed his belief that the wait would be “worthwhile”. Whereas responding to a question from popular crypto YouTuber Jungle Inc, he cautiously stated that both himself and Ripple’s chief legal officer, Stuart Alderoty, considered the documents to be of significant value, justifying the 18-month struggle to have them made public.
The Hinman documents are a collection of internal SEC communications related to a speech given in 2018 by former SEC Director William Hinman. During this speech, Hinman suggested that certain cryptocurrencies, including Bitcoin, could transition from being securities to resembling commodities once they achieve a certain level of decentralization.
Advocates of Ripple strongly believe that the unsealing of these documents will provide crucial insights into the legal status of Ripple’s native digital asset, XRP. The outcome of this development could have far-reaching implications for Ripple and the broader crypto industry.
It is noteworthy that the unsealing of the Hinman documents occurs during a tumultuous period for the cryptocurrency sector. In addition to this event, today will witness a federal court hearing on the SEC’s motion to freeze the assets of Binance.US. This motion follows a series of legal actions against the popular exchange.
XRP’s Security Status Hangs in the Balance
The SEC initially filed a lawsuit against Ripple in December 2020, accusing the company of conducting an unregistered securities offering through the sale of XRP. Ripple has consistently refuted these allegations, arguing that XRP does not meet the criteria outlined in the Howey test for being classified as a security.
Notably, many top executives tweeted at Ripple have been optimistic about an imminent resolution to the lawsuit, pro-XRP lawyer John Deaton recently suggested that Judge Analisa Torres, who presides over the case, is likely to reach a final decision before September 30 of this year.
However the specifics about the Hinman documents remain undisclosed, they could potentially contain evidence that could tip the scales in Ripple’s favor. The crypto community eagerly awaits the release of these documents, with Garlinghouse’s tweet further heightening expectations.
