On Tuesday (May 16, 2023), Ripple CEO Brad Garlinghouse hailed what he termed a \u201cwin for transparency\u201d in the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and his firm. But what does this \u201cwin\u201d really mean?<\/p>\n
As reported by CoinDesk, a federal judge has ruled that the SEC cannot seal documents connected to a 2018 speech by former official William Hinman on cryptocurrency and securities. This speech is crucial to Ripple\u2019s defense since Hinman stated that, in his view, Ether was not a security. Ripple, the company behind the XRP cryptocurrency, has been embroiled in a lawsuit with the SEC since December 2020, accused of raising over $1.3 billion through an unregistered, ongoing digital asset securities offering.<\/p>\n
The documents in question, referred to as the \u201cHinman Speech Documents,\u201d are pertinent to the lawsuit. They were initially ordered to be handed over to Ripple by Magistrate Judge Sarah Netburn in January 2022 as part of the discovery process. District Judge Analisa Torres of the U.S. District Court for the Southern District of New York concurred with Netburn\u2019s decision, ruling that the documents cannot be sealed. However, she allowed the SEC to redact the personal information of individuals mentioned in these documents.<\/p>\n
Judge Torres argued that the documents are \u201cnot protected by the deliberative process privilege because they do not relate to an agency position, decision, or policy.\u201d Consequently, sealing these documents would not preserve \u201copenness and candor\u201d within the agency, nor would such an interest be substantial enough to outweigh the strong presumption of public access.<\/p>\n
Meanwhile, according to CoinDesk\u2019s report, Ripple attempted to redact several of its documents, including financial information and contractual agreements. Apparently, Judge Torres allowed many of these proposed redactions, aligning with Ripple\u2019s claim that they are targeted and specific. However, she deemed some of Ripple\u2019s proposed redactions \u201coverbroad,\u201d particularly those related to XRP.<\/p>\n