XRP Lawsuit: Ripple Submits Response To SEC’s Hinman Claims

May 14, 2022 12:20 pm

Yesterday, the price of XRP continued to rally by nearly 10% despite the overall market slump and the collapse of the stable coin UST.

The rally may likely be a response to the fact that Ripple has just submitted their reply to the SEC’s Hinman claims where they claimed that the documents were protected by the attorney-client privelege.

Defense attorney James Filan has shared Ripple’s exact response on Twitter where it revealed a number of things that show why the SEC’s claims are wrong.

The reply is now being addressed by Judge Netburn and could turn the case in a new direction of Ripple’s response is able to object the SEC’s claims in court.

FXEmpire reports on the details of Ripple’s submitted response:

The record, in this case, demonstrates that Mr. Hinman delivered his speech in his personal capacity.
He sought input from SEC colleagues as to how best to package his remarks.

That certain colleagues discussed legal concepts in some of their responses does not imbue them with attorney-client privilege.

Second circuit law makes it clear that advice on policy or messaging issues, even for lawyers, is not protected by the attorney-client privilege.

While Mr. Hinman was entitled to communicate with SEC lawyers and to receive privileged legal advice when discharging his role as the Director of Corporation Finance, communications about the substance of his personal remarks are not within the scope of any such attorney-client relationship.

The communications at issue involve no confidential information concerning the agency that would be protected by the attorney-client privilege.

In addition, Ripple also argued the very important point that the SEC also doesn’t have the right to make the assertion in the first place.

The privilege to make this claim would belong to Hinman himself and not the SEC which would invalidate the SEC’s entire response.

Ripple’s submission then goes into detail regarding Hinman’s 2018 speech which was where he stated that Bitcoin and Ethereum are not considered securities.

Empower Oversight has previously stated that Hinman should not have made such comments given his relationship with the law firm Simpson Thacher which is a member of the Enterprise Ethereum Alliance which creates a conflict of interest.

FXEmpire concludes:

The SEC is due to respond to Ripple Defendants’ comments on Wednesday, May 18. For XRP, the SEC response and court ruling could prove to be a pivotal moment in the case.

XRP will need to move through the $0.4221 pivot to target the First Major Resistance Level at $0.4635. XRP would need broader crypto market support to return to $0.46 levels.

In the event of an extended rally, XRP should test the Second Major Resistance Level at $0.5056. The Third Major Resistance Level sits at $0.5887.

Failure to move through the pivot would bring the First Major Support Level at $0.3804 into play.

Barring another extended sell-off throughout the day, XRP should avoid sub-$0.38. The Second Major Support Level sits at $0.3387.

Now, all eyes are on the SEC regarding how they will respond to Ripple’s comments on May 18 which will determine how the case moves forward.

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