Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
In a new chapter of the legal battle, U.S. regulators are due to hand over privileged documents to Ripple that show the agency previously declared Ether is not a security.
Ripplethe company behind the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. XRP just won a key court victory in its battle with the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC).
A federal judge ruled Thursday thatRipple you will be able to access 2018 SEC emails related to a speech on Ethereum a decentralized open-source blockchain with smart contracts functionality. (ETH). The access to privileged documents can be crucial to the claim against Ripple as they contain a historic speech by a former federal agency official stating that Ether the form of payment used in the operation of the distribution application platform, Ethereum. is not a value (security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value.).
The speech in question was delivered in 2018 by former SEC Director William Hinman. The official argued at the time that the ETH cryptocurrency cannot be qualified as a security due to its decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. nature.
By that time, Hinman’s statements were seen as pivotal within the cryptocurrency industry, in part because of their place in subsequent regulations for the sector.Ether is commonly regarded as a commodity. More recently, that discourse has become a cornerstone for the case ofRipplewhich has been arguing that its XRP token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. cannot be qualified as a security, just as ETH is not.
Ripple to access SEC emails
La SEC yRipple have been engaged in a protracted legal battle since 2020, when the U.S. regulator sued the company and its top executives over an alleged violation of federal securities law. The agency accusesRipple of having raised more than $1 billion in a sale of XRP tokens which it lists as unregistered securities.
As part of the legal strategy,Ripple has sought to argue that XRP cannot qualify as a security because it has characteristics that are very similar to Ethereum even under the SEC’s own previously established criteria. In the process, the crypto firm has been seeking access to documents detailing the agency’s internal communication and policies.
U.S. District Court for the Southern District of New York Judge Sarah Netburn, who has been handling the case, ruled this week thatRipple could gain access to some privileged SEC documents. Among them, the email with Hinman’s speech and some notes of meetings between Commission officials and third parties.
Ripple received the news as a victory for its case, the company’s general counsel, Stu Alderoty, noted:
We are pleased with the Court’s order, which grants Ripple access to important documents that the SEC was withholding. We will continue to aggressively defend this case, and we remain optimistic that the resolution of this case will provide much needed clarity to the industry.
Judge Netburn rules in Ripple’s favor
The SEC had previously argued that the documents in question were subject to privilege, so they were under no obligation to share them with the defendant. Likewise, the regulator has also argued that Hinman was speaking for himself when he transmitted his 2018 speech, and thus would not necessarily represent the agency’s official position.
The judge agreed with the SEC with respect to several of the documents at issue, but rejected the agency’s privilege to withhold more than a dozen batches of other documents, including emails. Netburn ruled in favor of Ripple under the SEC’s own arguments. The judge concluded that the privilege did not apply to the emails because the speech concerned, precisely, the former director’s personal views, not those of the agency.
“ The SEC is directed to review its privilege log and produce, in whole or in part, any documents previously withheld in reliance on the privilege that would be inconsistent with this order “, the judge wrote.
While access to the documents represents a victory forRippleby providing it with possible new tools for its defense, the Tribunal’s position could not necessarily be beneficial to the company, as the judge has admitted that the official’s speech about ETH’s qualification as a ‘non-value’ responds to his personal opinion. and not the official view of the regulators.
In any case, the information could help you toRipple to demonstrate how the SEC has maintained an unclear and even unjustifiably tough stance on companies in the industry. For now, the ruling is just one proceeding in an ongoing legal battle.
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Article versioned by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva