Judge Denies SEC Request, Forces Them To Produce Hinman Speech

April 15, 2022 11:50 am

Ripple has scored yet another major victory, with Judge Sarah Netburn’s recent ruling against the S.E.C. 

The agency fought ferociously to keep the Hinman speech out of the courtroom, but despite this they were ordered to produce the speech, which could potentially destroy their entire case, earlier this year.

Despite the order, SEC officials and attorneys continued to claim that Hinman’s speech contained sensitive information protected on grounds of deliberative process privilege.

Deliberative process privilege is a legal shield which allows agencies of the government to forego transparency in order to protect details of their methods and investigative procedures from potential bad actors.

DPP is predicated on the idea that information relating to internal processes can be used by malicious actors to circumvent government agencies and regulation.

This opaque protection was pierced by Netburn’s recent ruling, which compelled the SEC to produce the documents for the legal proceedings.

Here is the latest development in the ongoing Ripple vs S.E.C. lawsuit:

The Block featured Netburn’s opinion:

“The SEC seeks to have it both ways, but the Speech was either intended to reflect agency policy or it was not,” said the order. “Having insisted that it reflected Hinman’s personal views, the SEC cannot now reject its own position.

The Speech was not an agency communication, and the deliberations as to its content are not protected by the privilege.”

 

Daily Hodl reminds us:

In the speech, Hinman said Ethereum (ETH) was not a security.

The SEC sued Ripple in December 2020, alleging that the company sold XRP as an unregistered security, a position the regulator maintains to this day.

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