Email correspondence from 2018 has revealed that several US Securities and Exchange Commission (SEC) officials were involved in discussions regarding the classification of ETH as a security.
The release of these emails comes as part of Ripple’s legal dispute with the SEC, where Ripple is accused of illegally selling XRP as unregistered securities over a period of more than seven years.
Internal Communications Revealed
Internal communications within the US Securities and Exchange Commission (SEC) have revealed debates around the interpretation of a 2018 speech by former CFO William Hinman.
The speech, which raised the possibility that ETH is not considered a security, sparked discussions within the SEC regarding its clarity and implications.
Stuart Alderoty took to Twitter this morning to remind his followers that it’s been five years since Hillman made his infamous speech, and now “we can finally share what happened behind the scenes.”
“And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the current state of Ether, the Ethereum network, and its decentralized structure, current offers and sales of Ether are not securities transactions.”
William Hinman, former SEC official.
On May 17, Ripple achieved a favorable outcome in court when the judge denied the motion to seal Hinman’s speech, which has been the subject of controversy.
These newly released emails, dated June 13, shed light on internal discussions among several SEC officials who deliberated over whether to classify ETH as a security, while the SEC had previously claimed that Hinman’s speech did not necessarily reflect their points of view.
The stakes are getting higher
The ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple is coming to a head with Judge Torres’ impending ruling in SEC v. Ripple. The outcome of this ruling has significant implications for the crypto industry as a whole.
(embed)https://www.youtube.com/watch?v=E0Dpgmc5aa4(/embed)
If Judge Torres rules in favor of Ripple, stating that XRP tokens traded on secondary markets are not considered securities, it could have far-reaching consequences.
This decision would weaken the foundation of the SEC’s case against other major cryptocurrency exchanges, such as Coinbase and Binance, which have faced similar allegations from the regulatory body.
The result of SEC v. Ripple has the potential to set a precedent for the treatment of digital assets in the United States and shape the regulatory landscape for the cryptocurrency industry.
