Lawyer: Ripple gets massive support for super important documents and XRP is no security – Is this the turning point for SEC case?

  • Forbes columnist who’s diligently tracking the Ripple/SEC case has requested access to the Hinman speech as she believes it to be game-changing for the entire crypto industry.
  • An XRP enthusiast noted that Ripple’s sale of XRP since 2019 has only been for ODL transactions, thus, they won’t constitute for being a security.

The Ripple vs SEC case is taking new turns every single day as Ripple continues to aggressively defend its position that XRP is a security. In Ripple’s latest minor victory, the blockchain firm made SEC admit that XRP is a software code and not a security.

As per the latest development, Forbes journalist Dr. Roslyn Layton has filed a motion for intervening and seeking to access the document of Hinman’s speech from the court.

Represented by attorney J. Carl Cecere, the Forbes journalist is making an effort to prevent the SEC’s motion of December 2022 to seal some of the documents from Hinman’s speech. Dr. Layton is a regulatory policy columnist and holds no financial interest in Ripple or XRP, or neither in the case itself, notes the motion.

However, the journalist has been covering the developments rigorously while publishing numerous articles on Forbes. The letter also notes that Dr. Layton has examined the central role that the Hinman documents can play for the industry while justifying the petition.

Dr. Layton and her attorney argue that as per federal common law and the First Amendment, it’s a fundamental right of the press to access judicial documents. In the letter, the columnist further explains that much is at stake for the entire crypto industry and not just for Ripple, its executives, and the XRP holders.

“This case is also poised to determine the future of cryptocurrencies in this country, serving as a legal referendum on the SEC’s entire system of ‘regulation by enforcement’ for the industry,” she wrote.

Lack of regulatory guidance by the SEC

Fober journalist Dr. Layton further added that the lack of regulatory guidance from the U.S. SEC is the reason behind the Hinman documents getting enough prominence for public scrutiny.

Although assets like Ethereum (ETH) have stayed outside the SEC jurisdiction, Ripple is facing a billion-dollar fine. “That inconsistency has given rise to grave concerns about potential conflicts of interest, because Hinman had a financial stake in promoting Ethereum to the exclusion of competing coins like XRP,” she added.

Ripple has been arguing that the former SEC chief Hinman said in 2018 that Ethereum isn’t a security. Thus, the same rules should be applicable to Ripple, argues the blockchain startup. While speaking at the WEF 2023 summit earlier this year, Ripple CEO Brad Garlinghouse said:

When those come to light, I think you’ll see more how it is possible that the SEC decided to bring a case against Ripple, given what they were saying within their own walls.

XRP and ODL connection

Bill Morgan, an XRP enthusiast shared a screenshot from Ripple’s Q4 2022 report noting that Ripple sold XRP only in connection with the on-demand liquidity (ODL) transactions. He added that this is happening since 2019 and thus SEC has refrained from the injunction of the current XRP sale. He added;

There is no common enterprise between the ODL customer who buys the XRP to transfer it and the recipient who converts it into some fiat at the other end.

Thus, if the current sale of XRP is only for ODL transactions and not an investment, they are not with an expectation of profit, which doesn’t make it a security.

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