Judge Denies SEC Motion to Seal Hinman Documents in Ripple Case
In a significant development, Judge Analisa Torres who presided over the Ripple vs SEC case disputed the securities regulator’s motion. The motion seeks to seal documents related to a speech by former SEC director William Hinman in June 2018. Hinman’s documents were, according to Justice Torres, “a judicial document subject to a strong presumption of public access.”
As a result, the judge has ordered officers to unseal all evidence included in his order, including documents relating to Ripple’s sale of XRP and other matters. This decision affects the SEC’s efforts to keep important information private from the public eye.
Submissions in response to the move emphasize the importance of these documents to the judicial process and their accessibility to the public. It was also stated that sealing them would not help maintain “openness and candor” within the agency.
IN DECEMBER, the SEC initially filed a motion to seal internal emails, text messages, and expert reports regarding Hinman’s speech. On the other hand, Judge Torres categorically classifies these documents as “judicial” and therefore requires their inclusion.
Ripple CEO Brad Garlinghouse hailed this decision as “another win for transparency!” This decision bodes well for Ripple, fighting accusations by the SEC of selling unregistered securities. Garlinghouse is optimistic that a decision will be reached by the summer, which could have far-reaching implications for the crypto industry and deal a blow to the SEC’s tendency to overregulate.
Following the announcement, the price of XRP is up nearly 8% in the last 12 hours, with Ripple’s cross-border coin trading at $0.457 at the time of writing. Currently testing resistance at $0.460, similar to early May. It has yet to regain the momentum it gained in late March when it peaked just below $0.55. Despite the recent gains, XRP is still 86.5% lower than its all-time high of $3.40 set in January 2018.
Judge Torres’ rejection of the SEC’s motion to seal Hinman’s documents was critical to ensuring transparency in the Ripple v. SEC. This decision sets a precedent for public access to judicial documents and allows Ripple to challenge the SEC’s allegations. The crypto industry awaits the potential consequences of a favorable verdict for Ripple as the case develops. At the same time, XRP continues its price recovery but has a long way to go to recapture its previous highs.