Just-In: Ripple Criticizes SEC’s Delay Tactics, Wants Hinman Memos

Ripple on Wednesday criticized another attempt by the Securities and Exchange Commission (SEC) to block the release of  internal documents related to their ongoing case.

In a letter to the court, Ripple said the SEC’s recent citation of attorney-client privilege over the documents held no weight, and called out the regulator for attempting to delay proceedings.

The SEC has repeatedly tried to block the release of internal memos related to a now-infamous speech by former director Bill Hinman. Hinman had in that speech declared that Bitcoin and Ethereum are not securities.

The nature of cryptocurrencies is one of the key issues being discussed in the Ripple case.

SEC cites attorney client privilege

The SEC in another move to block the documents requested the court to allow them to file a brief reply supporting “attorney client privilege” by May 20, 2022. Meanwhile, Ripple and other defendants in the case have completely opposed the commission’s request. The defendants in the letter have mentioned that this would be the commission’s at least sixth opposition filing against the motion to compel.

In a letter, Ripple criticised the SEC’s approach toward a particular motion in the lawsuit. It said that the commission’s appeal to file a sur-reply does not support any justification. The SEC didn’t even see the defendants’ latest filing which is termed as inappropriate and premature.

The Defendants raise the main point that SEC is now claiming that last year’s briefings, court decisions, motion for reconsideration, and all other procedure were all academic exercises. The Commission believes that every single document comes under the privileged attorney client communications.

Ripple asks SEC to justify its motion

The Court has already overruled the SEC deliberative process privilege (DPP) objection twice in the last nine months. After the submission of expert discovery, the commission is still protecting the former SEC official’s speech.

The letter asks that the SEC should justify its demand for further briefing and that too after reviewing the defendants’ filings.

Meanwhile, the commission announces nearly doubling the size of Enforcement’s Crypto Assets and Cyber Unit. The SEC declared 20 additional positions in order to protect crypto investors from multiple threats. The cyber unit will grow to 50 dedicated positions in the future.