SEC Proposes Two Redactions to Hinman’s Documents, Files Opposition to Ripple Summary Judgment Motion

SEC wants to redact the two drafts of Hinman’s speech.

Shortly after turning over the drafts of William Hinman’s 2018 controversial speech, the SEC submitted for in-camera review proposed redactions to two document drafts. 

The development was shared by James K. Filan, a former U.S. federal prosecutor. 

#XRPCommunity #SECGov v. #Ripple #XRP The SEC has submitted for in camera review by Magistrate Judge Netburn proposed redactions to two drafts of Hinman’s June 2018 speech that discuss pending determinations before the SEC. pic.twitter.com/ZTnHo0jcke

— James K. Filan 🇺🇸🇮🇪 120k (beware of imposters) (@FilanLaw) October 21, 2022

The securities regulators want to redact the documents because they contain discussions about pending matters of the agency.

“Pursuant to the Court’s July 12, 2022 order, the SEC respectfully submits for in-camera review proposed redactions to two drafts of Director Bill Hinman’s June 2018 speech that discuss pending determination before the commission,” an excerpt of the SEC motion read.

According to the SEC, the court ruled on April 11, 2022, that the agency could seek to leave to request redaction of communications by SEC staff discussing how the Hinman speech could affect other agencies’ affairs.

“The SEC is hereby submitting these two documents with its proposed redactions highlighted in yellow on page 6 of entry 29 and page 5 of entry 35 […] and therefore seeks to leave to make corresponding redactions to those two documents,” it concluded.

The proposed redactions have been submitted for in-camera review by Judge Sarah Netburn. Ripple is expected to comment on the SEC’s request in the coming days.

As reported, the SEC finally handed over the drafts of Hinman’s controversial 2018 speech to Ripple, as ordered by Judge Analisa Torres.

“Over 18 months and 6 court orders later, we finally have the Hinman docs (internal SEC emails and drafts of his infamous 2018 speech),” Stuart Alderoty, Ripple’s General Counsel said.

SEC Files Opposition to Ripple’s Summary Judgment Motion

Meanwhile, the Securities and Exchange Commission has also opposed Ripple’s summary judgment motion. The regulators asked the court to grant its summary judgment motion because of the evidence that proves Ripple conducted unregistered securities offerings in the U.S.

According to the SEC, Ripple’s analysis of the Howey test is an attempt by the blockchain company to construct its “own test from pre-1933 state law by taking out of context two words (“essential ingredients’ from the Howey opinion, and then purportedly showing that they pass their test.”

The SEC maintained that XRP is a security because most of Ripple’s XRP sales were made in exchange for money, adding that purchasers invested in a common enterprise with one another and Ripple.

Furthermore, the SEC claimed that Ripple led investors to expect profit from XRP based on its managerial efforts.

“Finally, the Individual Defendants’ arguments that certain of their XRP offers and sales were not ‘domestic’ also fails,” the SEC added.

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