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Brad Garlinghouse, CEO of Ripple, says he thinks the Hinman documents will be “well worth the wait” as the deadline for their release draws near. The 18-month legal struggle to unseal these documents, according to Garlinghouse and Stuart Alderoty, chief legal officer of Ripple, in a tweet response on June 12.
The internal communications of the Securities and Exchange Commission (SEC) surrounding a speech delivered by former director William Hinman in 2018 are covered by the Hinman documents. In the speech, Hinman talked about how as cryptocurrencies like Bitcoin and Ether become more decentralized, they might stop being viewed as securities and start to resemble commodities.
The unsealing of these documents, in the opinion of many Ripple supporters, will shed important light on the legal standing of XRP, the company’s native coin. They are hoping it will clarify whether or not XRP should be categorized as a security.
The timing of the Hinman documents’ release coincides with a difficult time for the cryptocurrency market. Following a number of legal measures filed against the exchange, a federal court is scheduled to hear the Securities and Exchange Commission’s demand to freeze the assets of Binance.US on June 13.
In December 2020, the SEC filed a lawsuit against Ripple, claiming that the sale of XRP was an unregistered securities offering. As long as XRP doesn’t pass the Howey test, it shouldn’t be classified as a security, according to Ripple. Pro-XRP attorney John Deaton recently projected that Judge Analisa Torres will make a definitive ruling on the matter before September 30 of this year, despite the fact that Ripple executives have continued to be optimistic about the outcome of the SEC litigation.
Industry participants will keenly watch any disclosures that might have an impact on Ripple’s future and the regulatory environment surrounding cryptocurrencies in the coming days when the Hinman documents are unsealed.