In recent news, XRP prices have experienced a significant 7.4% increase in the past 24 hours, outperforming the broader crypto market. This surge may largely be attributed to crypto enthusiasts placing their bets on a favorable outcome for payments company Ripple Labs in its ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC).
The release of documents connected to William Hinman, who served as the director of the SEC’s Division of Corporation Finance between 2017 and 2020, has garnered considerable attention. In a 2018 speech, Hinman expressed his opinion that Bitcoin (BTC) and Ether (ETH) should not be classified as securities. One of the Hinman emails plainly stated, “We do not see a need to regulate Ether, as it is currently offered, as a security.”
Ripple Labs is using Hinman’s remarks to argue that XRP should not be considered a security, potentially leading to a positive outcome in their ongoing legal battle. In 2020, the SEC filed a lawsuit against Ripple, alleging that the company sold unregistered securities. It is important to note that Ripple has consistently maintained a distinction between itself and XRP, which underpins some of its products and the XRP Ledger network. Nevertheless, any developments in the case significantly impact XRP prices.
Advocates of Ripple Labs may emphasize Hinman’s apparent open-mindedness toward cryptocurrency, interpreting his statements as a signal that the SEC will not heavily regulate XRP. If Ripple Labs emerges victorious in the lawsuit, this could reinforce their beliefs that the crypto market doesn’t need excessive oversight to thrive.
On the other hand, skeptics may argue that Hinman’s views from three years ago do not necessarily represent the current SEC stance on cryptocurrency. They may contend that it is unwise to base today’s expectations on dated statements, especially considering the rapid evolution of the crypto market. Furthermore, critics might assert that a favorable outcome for Ripple Labs could set a dangerous precedent for companies seeking to avoid regulation.
In conclusion, the release of Hinman’s documents has shed light on his perspective regarding cryptocurrency regulation in 2018. These documents have injected both optimism and uncertainty into the broader debate surrounding the legal classification of cryptocurrencies. Whether Ripple Labs achieves a favorable verdict or not remains uncertain, but the outcome of this case will undoubtedly have a lasting impact on the future of cryptocurrencies and their regulation.
Source: Coindesk
