William H. Hinman, was a director of the SEC’s Division of Corporate Finance.
Hinman said, in 2018, that “bitcoin and ether are not securities.”
The United States federal judge, Sarah Netburn, ruled that Ripple Labs Inc, issuing company of the cryptocurrency XRP, will be able to question in court a former official of the United States Securities and Exchange Commission (SEC, for its acronym in English) .
The information was released today, July 16, 2021, by the Bloomberg news agency. According to this publication, Ripple had asked the US magistrate to allowed William H. Hinman to be challenged, former director of the SEC’s Corporate Finance Division between 2017 and 2020. This former official, in 2018 had said that “bitcoin and ether are not securities.”
The judge ruled that Hinman must comply with Ripple’s requirement and noted that it will be your testimony as a former high-ranking official is very important.
The case involves important political decisions in our markets. The amount in dispute is substantial and the public interest in this case is significant.
Sarah Netburn, United States Federal Judge.
According to Ripple, this statement from Hinman may be used as evidence of the SEC’s position on crypto assets. As mentioned, when the manager was in office, he indicated in a speech that bitcoin and ether are not securities. Ripple considers this feature to be attributable to XRP as well.
Hinman’s statement will be important in unlocking the SEC’s case against Ripple. Source: Youtube.
Before the court ruling, the SEC had opposed Hinman being called to testify. The government agency believes that this SEC decision would jeopardize its regular workflow as the officials would link their charges with a possible confrontation with justice.
XRP Is it an unregistered security or not?
This decision of the Manhattan Court adds another victory for Ripple because in April of this year, the magistrate rejected the motion of the SEC to disclose financial history of executives of the firm that owns XRP, as CriptoNoticias reviewed on that occasion.
The SEC’s case against Ripple has progressed from late 2020, when the state entity sued the finance company and its founders for alleged XRP sales. According to the SEC, this it would be an unregistered security, while Ripple defines it as a virtual currency.
According to the complaint filed by the SEC, Ripple would have raised at least $ 1.3 billion since 2013 through the sale of XRP. Similarly, it could have used that asset to pay employment benefits. Larsen and Garlinghouse were also charged with making unrecorded personal sales of the alleged security for a total of $ 600 million.