- The disclosure of papers connected to the “Hinman Speech” brought a new element to the Ripple vs. SEC battle regarding the categorization of XRP as a securities.
- The participation of Vitalik Buterin, the founder of the Ethereum Network, has sparked discussions.
In a surprising turn of events, the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple have shed light on the involvement of Vitalik Buterin, the co-founder of Ethereum, in the creation of a pivotal speech given by former SEC director William Hinman.
This revelation has sent shockwaves through the cryptocurrency community, raising questions about the potential impact on both Ethereum (ETH) and the legal proceedings involving Ripple’s XRP.
The SEC’s complaint against Ripple claims that XRP is an unregistered security, resulting in a contentious court struggle. Ripple’s legal team has demanded papers pertaining to the SEC’s interactions and talks about cryptocurrencies as part of the case, including emails from William Hinman, who gave a speech in 2018 stating that Ethereum was not a security.
However, the disclosure of these papers has ignited a wave of speculation and interpretation among investors, community members, and reporters who are eager to decipher their significance.
The release has sparked intense debates on Twitter, with individuals discussing whether William Hinman’s opinion expressed his personal viewpoint or represented the official position of the SEC.
One particular email from Hinman has attracted significant attention. In the email, he states:
“Attached please find a draft of the speech I had mentioned, which suggests that we do not need to see a need to regulate Ether, as it is currently offered as a security.” (Emphasis added.)
The interpretation of this statement has sparked varying viewpoints within the crypto community. Some argue that it signifies the SEC’s recognition of Ethereum’s compliance with existing regulations and offers validation to the broader cryptocurrency industry. Others view it as a potential inconsistency in the SEC’s approach, questioning why Ethereum was treated differently from other cryptocurrencies like Ripple’s XRP.
The documents, according to Stuart Alderoty, Ripple’s Chief Legal Officer, reveal Hinman’s disdain for concerns regarding the lack of basis for his research and its deviation from accepted legal norms specified by the Howey test. This remark not only perplexed the market, but it also revealed flaws in regulatory oversight.