According to legal expert Jeremy Hogan, the SEC made a “Big Mistake” that will haunt them in the XRP lawsuit
According to crypto legal expert Jeremy Hogan, the US Securities and Exchange Commission (SEC) is erroneous in its XRP action against Ripple.
William Hinman, a former SEC director, delivered a lecture in 2018 stating that Ethereum (ETH) was not a security, which has sparked recent litigation.
Initially, Federal Judge Sarah Netburn ordered the SEC to release emails related to the speech in January, but the SEC contested the order and the order was overturned. Even though she granted a clarification, Netburn dismissed the petition and directed the SEC to provide the necessary draughts and communications by April.
When Netburn overruled their challenge, the SEC sought extra time to submit an objection to Netburn’s judgement.
According to Hogan, the SEC’s concerns were the focus of a hearing on Wednesday. Because the SEC has argued about the Hinman emails in a variety of ways, the lawyer says the agency has erred.
“However, the SEC made a significant error in this hearing… The theory of a case and why it’s so vital to keep to your theory were discussed in depth last year. Afterwards, we discussed how the SEC made a mistake by shifting its position on the nature of Hinman’s remarks. That’s why you must stay to the premise that Hinman’s own personal view is the only one that matters.
Now that we know Judge Netburn has previously concluded that Hinman’s statement constituted his personal opinion for the purposes of discovery, we may proceed accordingly. So the SEC may now say that it is irrelevant to anything, and that’s OK, but we know it now harms the SEC in those discovery motions, so there was a trade-off there… The SEC’s attorney, on the other hand, put in a tremendous amount of effort today in an attempt to win this motion, which was probably impossible to win.
Asked by the court, ‘Is the SEC now saying the speech mirrored the views of the Division of Corporate Finance?’ And the SEC lawyer agreed, saying, “Yes, sir.” There was some backtracking after that, but the initial and most straightforward response was “Yes.”