Judge’s Ruling Exposes Weaknesses in SEC’s Ripple Lawsuit

US District Judge Analisa Torres has rejected the SEC’s request to seal documents connected to a 2018 speech by former SEC Head William Hinman. In the speech, Hinman stated that Bitcoin and Ethereum should not be classified as securities. However, the SEC accused Ripple of selling XRP as an unregistered security.

The SEC argued that the documents should remain sealed as they contained deliberative materials that could expose the agency’s thoughts regarding the classification of XRP as a security.

Nonetheless, Judge Torres ruled that the documents were not protected by the privilege of deliberative process since they did not pertain to an agency position, decision, or policy.

This ruling represents a triumph for Ripple and poses a significant setback for the SEC’s case. The unsealed documents may present evidence suggesting that the SEC lacked a valid foundation for initiating legal action against Ripple.

Ripple CEO Brad Garlinghouse celebrated the ruling on Twitter, referring to it as “another victory for transparency” and asserting that it underscores the baselessness of the SEC’s case against Ripple. As of now, the SEC has yet to issue a response to the ruling.

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