• The US Securities and Exchange Commission (SEC) and Ripple requested an extension on unsealing the internal deliberations following a speech by former director William Hinman.
• District Judge Analisa Torres of the US District Court for the Southern District of New York granted the motion, setting June 13th as the new deadline.
• The Ripple-SEC case has implications beyond Ripple and XRP because it could set a precedent for how other cryptocurrencies are regulated and classified in the future.
Request for Extension on Unsealing Hinman Documents
The US Securities and Exchange Commission (SEC) and Ripple have requested a one-week extension on unsealing the internal deliberations following a speech by former director William Hinman. On Friday, both parties filed a request seeking to extend the deadline for filing multiple exhibits including the Hinman documents. Later on that day, District Judge Analisa Torres of the US District Court for the Southern District of New York granted their motion, setting June 13th as the new deadline.
The Hinman Documents
The Hinman documents primarily constitute a speech made by William Hinman in June 2018 during which he declared that Ether, native token of Ethereum blockchain, is not a security. In December last year, SEC submitted a motion to seal internal communication such as emails, text messages, expert reports following this speech in Ripple case. They argued that their mission took priority over public’s right to access such documents citing their lack of relevance to court’s summary judgment decision amongst other reasons.
Denial of Motion from SEC
Earlier this week however Judge Torres denied motion from SEC to seal records of its internal deliberations arguing that those documents are “judicial documents” subject to strong presumption of public access stating that they would “reasonably have tendency to influence ruling on motion”.
Implications Beyond Ripple & XRP
The Ripple-SEC case has far reaching implications beyond Ripple & XRP because its rulings could set precedent for regulation & classification of other cryptocurrencies in future. If court decides XRP is security then it could lead to similar classifications or different regulations being imposed upon other digital assets as well depending upon how they were developed & distributed originally & what type role holders can expect them to play in ecosystem or network if any at all?
The extension granted by Judge Analisa Torres will provide time needed by both parties involved -the SEC & Ripple -to properly make their respective arguments before court makes its final ruling regarding status of XRP token whether it is security or not? This ruling will be consequential not only for current litigation but also serve as point reference when determining regulatory framework applicable towards other virtual currencies going forward .