Here’s How Judge Torres May Apply Hinman ETH Analysis to XRP

A crypto influencer discusses how Judge Torres may apply Hinman’s Ethereum analysis to XRP in the Ripple-SEC case as the legal battle nears its end.

As the end of the legal battle between Ripple and the Securities and Exchange Commission (SEC) draws nearer, crypto sleuth and XRP community influencer Mr. Huber has taken to Twitter to discuss the potential implications of Bill Hinman’s Ethereum (ETH) analysis on XRP.

In a recent tweet, Mr. Huber highlighted the significance of Judge Torres’ decision to apply Hinman’s analysis to XRP following the recent public disclosure of the document

Case One for XRP

The first point raised by Mr. Huber emphasized that if Judge Torres finds that William Hinman, the former Director of the SEC’s Division of Corporation Finance, lawfully excluded Ethereum from the securities rule, she would likely have to apply the same analysis to XRP.

Like Ethereum, this would imply that XRP would not be classified as a security, thereby eliminating the possibility of penalties. Mr. Huber further highlights that Hinman’s analysis did not consider the size of holdings or their transparency, indicating that XRP’s status as a non-security could be strengthened.

Alternative Scenario

However, in his second point, Mr. Huber presents an alternative scenario. If Judge Torres concludes that Hinman did not lawfully exclude Ethereum from the securities rule but acknowledges that Hinman’s statements could reasonably lead one to believe XRP falls under the same rules, a different outcome could emerge.

In this case, XRP might be considered a security, potentially subject to penalties. Nonetheless, Mr. Huber notes that the lack of fair notice and penalty could be relevant factors.

Notably, Mr. Huber’s tweet responded to a crypto enthusiast who questioned the relevance of the Hinman analysis to the SEC evidence against Ripple.

In a follow-up tweet, he clarified that the XRP community opposes Hinman’s arguments because Ripple’s argument, which focuses on the absence of post-sale obligations, is legally more robust and verifiable.

The crypto influencer further criticized Hinman’s concept of ‘decentralization’ as arbitrary and questioned its effectiveness thus far.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Source: https://thecryptobasic.com/2023/06/27/heres-how-judge-torres-may-apply-hinman-eth-analysis-to-xrp/?utm_source=rss&utm_medium=rss&utm_campaign=heres-how-judge-torres-may-apply-hinman-eth-analysis-to-xrp