XRP V/S SEC: Is Emergence of Hinman Documents a Ray of Hope?
With the legal feud between Ripple Labs and US SEC, an unrest was caused in the crypto community. With the emergence of hinman documents, can Ripple take a sigh of relief? Continue reading to find out.
16 JUN 2023, 3 min read
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Ripple Labs, a major player in the crypto space, has entered into a legal feud with the U.S. Securities and Exchange Commission (SEC) since December 2020.

The conflict emerged from accusations that Ripple traded unregistered securities via its crypto XRP. This confrontation has caused unrest in the crypto community, leading to similar allegations against crypto giants like Coinbase and Binance.

Recently, some hope has appeared on the horizon for Ripple, presented as the so-called "Hinman documents."

These documents contain internal SEC communications centered around a 2018 speech by former SEC Director William Hinman.

An important milestone in Ripple's legal tussle against the SEC was reached on Tuesday, when the Hinman documents, believed to contain strong arguments for Ripple's case, were finally unsealed.

Understanding the Hinman Documents

In his speech, Hinman made a pivotal point that cryptos like Bitcoin and Ethereum, initially deemed securities, could eventually morph into a commodity-like status upon reaching sufficient decentralization. In his 2018 speech, Hinman stated that neither Bitcoin nor Ether were securities.

This suggestion has stirred considerable interest among Ripple supporters, as they believe the analysis of these documents might provide critical insights into XRP's legal standing.

Also, among these documents is an edited version of Hinman's speech, which shows the editors' concern that Hinman's statement could potentially jeopardize the perception of Ether as a security.

The editing notes highlight a hesitance about locking the SEC into a stance it might struggle to amend later.

Additionally, the information disclosed in the documents signifies that back in 2018, the regulatory body didn't interpret "token lockups" as a sign of securities. This revelation carries significant implications, potentially aiding other crypto entities in defending against the SEC's classification of their tokens as "securities."

Also Read: Uniswap Contracts on Bitcoin Chain

Ripple hopes the Hinman documents could turn the tide in the ongoing SEC lawsuit. The legal dispute originated from the SEC’s allegation that Ripple sold $1.3 billion worth of XRP as an unregistered security.

Ripple has used Hinman’s speech to assert that XRP, like Bitcoin or Ethereum, should not be considered a security.

In its defense, Ripple argued that the SEC has failed to substantiate its claim and that XRP does not qualify as a security or an investment contract under U.S. federal law.

In pursuit of transparency, Ripple filed a Freedom of Information Act request, demanding documents that clarified how Hinman arrived at his conclusion.

Despite the SEC's attempts to keep these documents sealed by asserting their irrelevance to the case and the personal nature of Hinman’s statements, they were finally released in October 2022.

Judge Analisa Torres overruled the SEC's plea, deciding that the documents should be public.

Ripple Labs contends that Hinman’s comments signify that XRP should not be considered a security, potentially leading to a positive outcome for the payment firm in this litigation.

XRP Market Response and Ripple's Hopes

The unsealing of these documents triggered a slight price surge in Ripple’s token, XRP, before falling from the $0.53 resistance. Meanwhile, the token continues to trade at around $0.51.

Yet, the release of the documents has also initiated a rush of speculation and interpretation. The crypto community, including investors, enthusiasts, and journalists, is trying to determine their implications.

The question echoing through the community is whether Hinman’s opinion was purely personal or if it reflected the official viewpoint of the SEC.

Many analysts favor Ripple, believing that the SEC lawyers’ assertion that the speech was solely Hinman’s view and not a guide for the market could now be challenged.


In conclusion, the Hinman documents have brought a new dimension to the ongoing SEC vs. Ripple battle, potentially influencing the future of the crypto market at large.

As the world watches, the outcome of this lawsuit could set a precedent for how cryptos are regulated and perceived globally.

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