The ongoing SEC Vs. Ripple’s (XRP) case has taken another turn with the defendants requesting upon rescheduling the deposition of former Director of SEC’s Division of Corporate Finance, William H. Hinman, to mid-July. Sarah Netburn, Magistrate Judge of the District Court for the Southern District of New York has been informed with due diligence about the postponement of the deposition to 19th July instead of Hinman’s availability.
#XRPCommunity #SEC_NEWS v. #Ripple #XRP BREAKING – Ripple and the Individual Defendant’s have filed a letter with the Court informing Judge Netburn that the William Hinman deposition has been re-noticed for July 19, 2021. pic.twitter.com/VZUh0xXHxR
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) July 9, 2021
SEC’s counter-argument Against Ripple (XRP)
However, upon Ripple’s plea to depose a primarily influential and eminent officer of the SEC, the organization came back with a plea to revoke the request of the former. SEC claimed that the request for the deposition of a high-ranking officer by the defendants is irrelevant as their only proof of Hinman’s “unique first-hand knowledge” is entirely based on circumstantial and subjective positioning of the officer.
“Defendants have not demonstrated as required by Lederman that Director Hinman has ‘unique first-hand knowledge’ or that the information they seek is not available from other sources as to any facts about which they seek to elicit testimony. The only topic on which Defendants even claim (incorrectly) that Director Hinman has ‘unique first-hand knowledge’ is ‘the circumstances under which he prepared and gave his [Ether] speech and the agency’s treatment of the speech after the fact’.”, SEC wrote in their letter to the Judge Netburn.
Hinman’s 2018 speech
Nevertheless, Ripple is using Hinman’s 2018 speech at the Yahoo Finance All Markets Summit: Crypto, against him. Where Hinman claimed Ether to be a non-security while comparing it to Bitcoin. This 3-year old claim may cost SEC’s lawsuit to slip away from them into a completely unpredictable direction.
“And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.”, said Hinman.
Where SEC wants the deposition to be revoked, Ripple and XRP community is battling against it all over social media. As seen in a recent tweet by a lawyer from the XRP community, that claimed SEC’s argument against Ripple’s deposition request for Hinman being ‘circumstantial’ is itself of a subjective nature.
The SEC is speculating what Hinman’s deposition will be and basing its argument on that.