Hinman’s Noteworthy Speech Boosts XRP Prices Amid Ripple vs SEC Lawsuit
XRP prices experienced a significant 7.4% surge within the past 24 hours, outperforming the broader cryptocurrency market. Traders seem to be placing bets on a favorable outcome for Ripple Labs in their legal battle against the U.S. Securities and Exchange Commission (SEC). This boost in prices coincided with the public release of documents related to William Hinman, the former director of the SEC’s Division of Corporation Finance from 2017 to 2020, as part of the ongoing SEC lawsuit against Ripple Labs.
Hinman’s 2018 speech garnered attention, as he expressed his belief that both bitcoin (BTC) and ether (ETH) should not be classified as securities. In one of the disclosed emails, Hinman stated, “We do not need to see a need to regulate Ether, as it is currently offered, as a security.” Ripple Labs is leveraging these remarks to argue that XRP should not be considered a security, potentially leading to a favorable resolution for the company.
The SEC’s lawsuit, filed in 2020, alleges that Ripple sold unregistered securities. Despite Ripple’s historical separation from XRP, which powers some of its products and the XRP Ledger network, any developments in the case have a substantial impact on XRP prices.
