Ripple’s chief legal officer, Stuart Alderoty, has accused former SEC official William Hinman of including “made-up analysis” in his speech from June 2018. In this speech, Hinman commented that Bitcoin and Ethereum were not securities.
The release of documents related to Hinman’s speech has brought attention to his views on cryptocurrencies deemed as securities. According to the released documents, Hinman declared that Bitcoin and Ethereum were not securities.
In response to the release of these documents, Ripple’s Chief Legal Officer Stuart Alderoty tweeted that Hinman had ignored multiple warnings about his remarks and included “made-up analysis with no basis in law.” Alderoty believes that Hinman’s speech created confusion in the market and exposed regulatory gaps. He also stated that Hinman invented factors to consider when making a determination of whether a token is “sufficiently decentralized.”
These statements by Hinman are now at the center of Ripple’s defense in their battle against the SEC. Ripple has maintained since December 2020 that their native cryptocurrency, XRP, is not a security. The belief that the SEC is losing the case has contributed to a positive sentiment within the Ripple community in recent weeks.
The ongoing legal battle between Ripple and the SEC has significant implications for the cryptocurrency industry. The outcome of this case could provide clarity on the classification of cryptocurrencies as securities and could potentially impact how other cryptocurrencies are regulated. It remains to be seen how the court will rule on this matter, but the release of Hinman’s speech documents adds an interesting twist to the proceedings.