July 16, 2021, | AtoZ Markets – Ripple has obtained the permission of Judge Sarah Netburn for the testimony of William Hinman, ex-head of the finance department at the US Securities and Exchange Commission (SEC), Bloomberg is reporting.
Hinman who publicly stated that Ethereum is not a security will now have to clarify the principles for making this decision in court.
Hinman's testimony may take place as early as July 19
While Hinman's deposition is expected to take place as early as Monday, July 19, attorney James Filan said that the testimony process could be delayed "for a short period."
— James K. Filan ???? (@FilanLaw) July 15, 2021
It was originally planned that Hinman would testify on June 30, but then the SEC blocked Ripple's request. The regulator argued that the fintech company was unable to substantiate the need to question someone who "held one of the most senior positions" in the department.
However, Ripple itself claims that Hinman has never been a high-ranking official. Despite this, his testimony will play an important role in understanding the regulatory status of cryptocurrencies and XRP, according to Ripple.
The California-based company’s strategy is to portray the regulator’s claim as unfair, pointing to its previous decisions regarding cryptocurrencies.
XRP tokens holders acknowledged
Netburn said this lawsuit "involves significant policy decisions in the markets." The judge also noted the great public interest in the proceedings.
Lawyer Jeremy Hogan drew attention to the latter. In his opinion, the holders of XRP tokens played a role when they announced their intention to participate in the process in March 2021.
Read also: SEC Accuses XRP Investors of Launching ‘Crusade’ Against the Agency
During the hearing, Judge Netburn acknowledged YOU - yes YOU in her ruling. She mentioned the significant "Public Interest" in the case as one reason why this was an exceptional case and a basis for the Hinman deposition. Phone line was maxed out at 4k again - congrats to you! https://t.co/vTJJe3avJa— Jeremy Hogan (@attorneyjeremy1) July 15, 2021
As a reminder, the exchange regulator sued Ripple in late 2020. The SEC claims that XRP falls within the definition of securities. However, Ripple emphasizes that XRP is a cryptocurrency, the same as Bitcoin or Ether.
In April 2021, Netburn granted Ripple's petition for access to SEC documents revealing its “interpretation and views” of Bitcoin and Ethereum.
Earlier, the court denied the agency access to the records of Ripple's legal advice regarding XRP's legal status, but allowed it to request information about the company as part of a memorandum of understanding with foreign regulators.
We will also remind you that on June 15, the SEC achieved a 60-day extension of the period for the exchange of evidence in the course of the proceedings with the fintech company.
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