XRP, the native cryptocurrency for the Ripple network, has witnessed an impressive surge following the public release of the highly anticipated Hinman documents.
On Tuesday, the popular cryptocurrency soared over 7% to tap $0.5650 at noon. This price movement was met with enthusiasm from investors, as the reveal is a significant development in the ongoing legal dispute between the cryptocurrency firm and the US Securities and Exchange Commission (SEC).
In a tweet, Ripple CEO Brad Garlinghouse expressed his optimism about the potential influence of these documents on the lawsuit, saying he believes “they were well worth the wait.”
The infamous Hinman documents consist of internal communication within the SEC related to a speech delivered in 2018 by William Hinman, the former Director of the Corporation Finance division. In the speech, Hinman stated that Ether was not a security. Ripple has always insisted that these documents will be crucial, shedding light on the SEC’s perspective on cryptocurrencies, particularly Ether and XRP.
Expressing his gratification, Stuart Alderoty, Ripple’s Chief Legal Officer, noted that the public could finally get a glimpse at what occurred behind the scenes. According to the lawyer, the documents reveal that Hinman disregarded multiple warnings regarding the speech’s fabricated analysis, which lacked a legal foundation and failed to consider the Howey factors.
Stuart argued that these factors, created by Hinman to determine when a token becomes “sufficiently decentralized”, were seen as introducing confusion and regulatory gaps within the market. He noted that despite the agency exhibiting inconsistent positions on the speech’s significance in litigation, it remains accessible on the SEC’s website. This is despite the SEC insisting that the documents were Hinman’s opinion.
Stuart concluded by calling for the immediate removal of the speech from the SEC’s website, investigating potential influences on Hinman, and reassessing the speech’s validity in discussions around the classification of tokens. He emphasized the need for unelected officials to faithfully apply existing laws rather than attempting to create new ones, as Hinman seemingly did.
It is important to note that as the legal dispute between Ripple and the SEC approaches its conclusion, the contents of Hinman’s documents can tilt the scales in favour of Ripple.
Meanwhile, apart from the public release of the Hinman documents, the crypto market has also been reacting to two other notable events. Today, the US Court of Appeals for the third circuit ordered the SEC to clarify a rulemaking petition by Coinbase.
On the other hand, Binance US is also expected to challenge the SEC’s request to freeze its assets. The exchange filed a motion in court on Monday, June 12, stating that complying with the SEC’s request would put it out of business if granted.