A motion by the US securities regulator to seal controversial documents from Hinman’s speech has been denied, a move seen as a victory for the Ripple and crypto community.
The US Securities and Exchange Commission filed the motion to seal the documents on December 22, 2022, arguing that its mission overrode the “public’s right” to access documents that are “not relevant” to the decision of the Court’s summary judgment, among other arguments.
However, in the most recent order, US District Court Judge Analisa Torres ruled that the documents are “court documents” subject to a strong presumption of public access.
Fragment of Judge Torres’ sentence. Source: United States District Cour
“The papers of Hinman’s speech” would reasonably tend to influence [the Court’s] resolving a motion,” he added.
Judge Torres said the court has also rejected the SEC’s argument that sealing the documents is necessary to preserve “openness and candor” within the SEC, stating:
“The Hinman speech documents are not protected by the deliberative process privilege because they do not relate to an agency position, decision, or policy.”
While the court has ruled that documents from Hinman’s speech will be made public, it has granted the SEC’s two other requests that asked for the redaction of names and identifying information of SEC experts and investor whistleblowers XRP (XRP), as well as the defendants’ personal and financial information.
The court also denied certain motions to seal Ripple, including references linking Ripple’s revenue to XRP sales and the amount of compensation offered to trading platforms, among others.
Related: Watchdog Sues SEC Over FOIA Access to Documents on Potential Crypto Conflict of Interest
The Hinman Speech documents refer to the speech given by former SEC Corporation Finance Division Director William Hinman at the Yahoo Finance All Markets Summit in June 2018, where he reportedly stated that Ether (ETH) is not a security.
Ripple has considered the speech key evidence in its ongoing legal battle with the SEC, which alleges Ripple’s sales of XRP violated US securities laws.
XRP price rose on the news, jumping around 2.6%. It is currently trading at $0.43.
Hinman Speech documents will not be sealed; p.5. The judge makes it clear that they must be open regardless of their impact on a decision. It claims that it neither stifles the SEC’s deliberation nor the SEC’s “prophylactic” concern that it might be privileged in the future. pic.twitter.com/73YXhZszNY
— WrathofKahneman (@WKahneman) May 16, 2023
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Last Word?
Update (May 16, 23:05 UTC): This article has been updated to include background information and more details from the May 16 court filing.
