All along the way, the XRP team has been claiming that the cryptocurrency should not be treated as collateral, citing the former SEC official’s comments on ETH.
Ripple was allowed to question William H. Hinman, a former director of the US Securities and Exchange Commission, how a US judge has ordered.
Ripple’s request was to have the former director testify on comments he made in a 2018 speech on Ethereum (and Bitcoin).
On Thursday, US judge Sarah Netburn ruled that Ripple should go ahead and remove Hinman. The judge ruled that Hinman had “substantial authority” in the SEC, but that interrogation would “open the floodgates” for him to similar developments.
In her ruling, the judge stated that the trial against Ripple and two of its executives was “substantial” political in nature, involved huge sums of money and that there was a great public interest in it.
SEC refuses deposit
The SEC’s lawsuit filed against Ripple in December 2020 accused Ripple Labs of illegally selling unregistered securities. It also accused Ripple CEO Brad Garlinghouse and CEO Chris Larsen of profiting millions from the sale of XRP.
Ripple has denied all allegations and allegations and last week re-informed the court of their decision to oust Hinman on July 19, 2021 to build their response to the regulator’s allegations.
But the security guard defied the testimony, stating that Hinman’s views on Ether and Bitcoin were made in his capacity. However, the blockchain company’s attorneys say the ex-director’s testimony is key to their case, as they ask that the SEC disclose how it came to the conclusion that ether and bitcoin are not securities, XRP however.
Ripple has also alleged “unfair” treatment from securities regulators for lack of adequate “notification” of its plans to declare XRP as a security.
The court ruling now gives Ripple Labs an opportunity to question Hinman, although it won’t happen now on July 19th as planned. This follows Judge Netburn’s decision to give the two parties a week to agree on the nature of the testimony.