Crypto industry reacts to Hinman documents in SEC against Ripple

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The crypto world has been following with keen interest the latest developments in a high-profile legal battle with the Securities and Exchange Commission (SEC). On Tuesday, the publication of documents related to the “Hinman Speech” added a new twist to Ripple’s fight against SEC over the classification of XRP as a security. The so-called “Hinman Papers” have sparked a frenzied debate online. Much of the commentary interprets the release of the documents as a big win for Ripple.

The documents relate to remarks made by William Hinman, who served as Director of the Corporate Finance Division at the SEC from 2017 to 2020, and they feature in the lawsuit against Ripple Labs. These “Hinman Papers” are now publicly available.

Was Hinman speaking on his own behalf?

The SEC sued Ripple in 2020 for selling XRP as an unregistered security. However, Hinman’s written opinions seem to favor the Ripples side of the argument.

The release had a positive impact on XRP markets, with prices jumping more than 7% in the past 24 hours. Traders have apparently bet on a favorable outcome for Ripple Labs in the ongoing lawsuit.

However, the release of the documents has sparked a flurry of speculation and interpretation, with investors, community members and journalists eagerly trying to work out their meaning. Twitter sparked intense debate over whether Hinman’s opinion represented his personal view or the official position of the SEC.

In one of Hinman’s emails, he writes:

Please find attached a draft of the speech I had mentioned, which suggests that we need not see the need to regulate Ether, as it is currently offered as a security. (Emphasis ours.)

Source: ReKwang

Commentators were quick to intervene. Much of what they had to say favored Ripple.

What I take away most from these #HinmanEmails is that it appears that @SECGov officials who weighed in on the speech thought the purpose was to provide market advice and tried to write it in a way that would convey that, said Eleanor Terrett, a reporter for Fox Business.

So in the @Ripple case, the SEC lawyers’ argument that the speech was only Hinman’s opinion and not intended to guide the market may now be undermined.

What is #EthGate?

Moreover, the behavior of the SEC towards Vitalik Buterin, the founder of the Ethereum network, has confused many observers. A document reveals that Buterin had a call with Hinman and appears to have influenced his thinking and conclusions. Many critics say this prompted Hinman to give Ether (ETH) a “free pass” by not classifying it as a security.

Source: @Belisarius2020

Hinman had a call with VITALIK to figure out how [Ethereum] is working to clarify the security issue, said a Twitter commenter. It’s the same as someone being charged with murder, so let’s just call the suspect, ask them questions, and make a judgment based on their own answers.

Many on Twitter have accused the SEC of giving Vitalik Buterin’s Ethereum special treatment. XRP holders and their supporters refer to this alleged collusion as #EthGate.

On Tuesday, Ripple’s chief legal officer, Stuart Alderoty, called for an investigation to “understand what or who influenced Hinman.”

However, some were less amused by all the drama. Renowned crypto commentator Bennett Tomlin caustically stated, “Imagine having enough $XRP bags in 2023 that you end up thinking these emails are exciting… The pre-speech emails that contain the shocking reveal that Vitalik and Hinman had a brief phone call once.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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