SEC vs Ripple: All Eyes On XRP Price Rally As Hinman Documents Become Public
Key Takeaways:
The much-discussed Hinman Documents will become public today
The files have become central to the Ripple vs SEC case
XRP token has rallied over 9% ahead of their release
YEREVAN (CoinChapter.com) — The much-talked-about Hinman documents, vital in the legal battle between the US Securities and Exchange Commission (SEC) and Ripple, will be released today, June 13. These contain former SEC official William Hinman’s emails linked to drafts of his June 2018 cryptocurrency speech.
The crypto community, especially XRP investors and fans, is excited about the release. Some speculate that the contents of the files could give a major boost to Ripple’s case, tipping the scale in its favor.
The outcome of the ongoing case will also have a direct impact on the XRP price, not to mention on the entire crypto industry. The speculation of the release of the Hinman Documents has already sent the altcoin on a much-needed rally.
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The importance of the Hinman documents
In December 2020, the SEC sued Ripple Labs, the company it alleged was behind the cryptocurrency XRP. According to the agency, Ripple and two of its executives sold unregistered securities, thus raising over $1.3 billion in the process.
However, the company had alleged that the agency was biased. It did not extend the same hostility to cryptocurrencies, including industry leaders Bitcoin (BTC) and Ethereum (ETH).
At the Yahoo Finance All Markets Summit in June 2018, William Hinman clearly stated that he does not believe Ethereum was a security.
“Putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions,”
the former SEC official said.
To bring clarity to the SEC’s reasoning, Ripple’s lawyers had demanded that his speech, along with internal communications, be accepted as evidence. Based on Hinman’s above definition, XRP should not be a security either.
However, in December 2022, the SEC filed a motion to suppress Ripple’s request. It asked the court to “redact” the Hinman Speech Documents because they had “no relevance”.
It further alleged that the public right to know did not cover the case and it would set a dangerous precedent for others to demand sensitive information from the agency.
But its argument didn’t go far. Last month, US District Judge Analisa Torres denied the SEC’s Motion to Seal the Hinman documents. She instead ordered the agency to provide the documents.
The dreaded day for SEC Chair Gary Gensler and his team has come.
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Hinman docs are ‘well worth the wait’- Ripple Labs CEO
The excitement about the release of the Hinman documents is evident on social media. Brad Garlinghouse, the CEO of Ripple Labs, was optimistic about the development.
Garlinghouse has been at the forefront of the ongoing case with the US Securities and Exchange Commission (SEC).
In a Twitter reply to a question raised on the Hinman documents by crypto YouTuber Jungle Inc, Garlinghouse refused to provide many details. However, he did give a hint about his mood, saying they were “well worth the wait”.
The expectations are not far-fetched. News about the release of Hinman documents has already sent the XRP token on a massive rally.
The price of XRP has seen a rally of over 9%. It jumped from its daily low of $0.5139 to a daily high of $0.5614 before settling for $0.5155 while writing.
However, any positive news from the development could send it on a further bullish rally. While some speculate that it could target the $1 mark, it’s all-time high of $3 will only come after the case ends. Should Ripple win the case by September 2023, early investors could reap serious profits from XRP.
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Filed under: Bitcoin - @ June 13, 2023 4:06 pm