The U.S. Securities and Exchange Commission (SEC) finally surrendered the crucial Hinman Speech related documents to the Defendants. However, just after taking this major decision, the commission went to file its Memorandum in Opposition to the Ripple Defendants.
Can SEC perform a comeback in the Ripple case?
The SEC in the memo mentioned that the undisputed evidence proves that Defendants engaged in unregistered offers and sales of securities. It added that Ripple implicitly concede they will not prevail under the Howey test.
However, the commission asserted that the Defendants argument might look creative but it is entirely unavailing. The fabricated test done by defendants holds no support in the law. The SEC prevails in the matter of law here.
Two words from Howey, refashioned into an invented test, cannot bear the entire weight of the Defendants’Motion, Highlighted the US SEC. It added that the Ripple and Defendants’ statement completely ignores the amount of public promise to engage in efforts to generate value and liquidity for XRP.
Ripple is not relying on any testimony from fact witnesses. The defendants completely relied on the testimony of their experts. However, these experts are excluded under the Daubert. The facts are irrelevant and thus stand insufficient to support their request for summary judgment.
SEC still shielding Hinman speech?
This move landed after the SEC choose to surrender the Hinman speech related emails. Stuart Alderoty, Ripple’s General Counsel said that after the long wait of more than 18 months and 6 court orders they finally received the documents. He added that it was well worth the fight to get them.
Meanwhile, the SEC has submitted a letter of motion to Judge Netburn to redact two drafts of the 2018 Hinman speech. The vital drafts are submitted to Judge Netburn for in camera review for the purposes of the motion. The commission has even cited the April 11, 2022 order on the DPP question.