SEC vs. XRP: Layton Files Motion for Access to Hinman’s Speech Documents

The US Securities and Exchange Commission (SEC) sealed some of Hinman’s Speech Documents in December, 2022. The reason for this, as stated by the SEC, is that it offered in support of its summary judgment motion. Reportedly, William Hinman, the former SEC Corporation Finance Division Director, in this 2018 speech, proclaimed that ETH, the native token of the Ethereum blockchain, is not a security.

In the filing, Layton argued that the First Amendment and federal common law endows the press and the public with a “potent and fundamental presumptive right” to access “judicial documents.” The case, pointed out by Layton in her filing, for the public release of those documents is particularly strong. “This case has garnered intense public and media attention with analysts calling it a critical ‘inflection point’ for cryptos,” claimed Layton.

Elaborating on her argument, Rosalyn Layton remarked on the importance of this case, expressing:

The stakes are extraordinarily high, and not only for Ripple, its executives, and the thousands of XRP holders who have suffered billions in losses from the SEC’s misguided effort at supposedly protecting them.

Layton further added that this case will determine the future of cryptos in this country, serving as a legal referendum on the SEC’s entire system of “regulation by enforcement” for the industry. Moreover, the justifications, she conveyed, of SEC for maintaining the secrecy of the documents are “unavailing.”

Furthermore, Layton highlighted that the Hinman Speech Documents concern communications among agency officials hardly diminishes the “presumption in favor of disclosure.”

The SEC started their crackdown on various crypto firms under the command of Gary Gensler. Recently, it was reported that Paxos is being sued by the SEC for allegedly breaching laws protecting investors with regard to BUSD. While the crypto community had continuously mocked SEC head, Gary Gensler, he remains unfazed, still taking action claiming it’s to “protect the investors.”

However, Brad Garlinghouse, The CEO of Ripple, remains positive, believing the SEC vs. XRP case will end this year.

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