The ongoing legal showdown between Ripple (XRP) and the U.S. Securities and Exchange Commission Continues on in its 2nd year as spectators and investors anxiously await a conclusion. This week Attorney and crypto legal expert Jeremy Hogan said that the SEC has made a big mistake in its lawsuit against Ripple labs.
The SEC sued Ripple Labs in December of 2020 for allegedly issuing the XRP token as an unregistered security, and claims it remains one to this day. When the legal battle began, it appeared to favor the SEC, but several developments since have benefited the Ripple Labs. In a new video update, Hogan covers how the SEC has filed a motion for the court to reconsider the unsealing of emails regarding former SEC Director of Corporate Finance William Hinman’s speech while he stated that Ethereum (ETH) was not a security.
The motion filed by the SEC States:
“The speech – itself and the many drafts and comments by SEC staff across different SEC divisions and offices deliberating the agency’s approach to the regulation of digital assets – show that Director Hinman and other SEC staff used the speech to provide public guidance as to how [Hinman’s division] would apply the federal securities laws to offers and sales of digital assets including Ether.
Indeed, SEC regulations provide that Director Hinman’s public statements could be relied upon as representing the views of Corp Fin, the division he led.”
Hogan argues that the SEC now stating that Hinman’s comments about Ethereum (ETH) can be used as guidance, is a mistake made by the SEC as it contradicts its previous argument that Hinman’s comments where only his personal opinion and not to be used as guidance.
There is currently only 2 weeks left in the discovery phase of the lawsuit, Hogan claims the SEC’s late change in its argument could be a risky venture. The judge had previously determined the speech by Hinman was personal opinion only but will now have to weigh this motion for reconsideration. Attorney John Deaton who is representing the more than 65,000 XRP Holders with Amicus Curiae status in the SEC v. Ripple case, has commented on the upcoming ruling, pointing to how critical it will be for the outcome of the lawsuit.
XRP Price Reactions
XRP investors appear to be reacting positively to recent developments in the case. As larger cryptocurrencies prices have been dipping lower recently, XRP the sixth largest cryptocurrency by market cap trades at $0.80 with a 5% jump in price over the last several days.