Breaking News: Hinman Emails Released - Ripple Could Benefit from SEC's Ethereum Classification

 

In a significant development, the release of the Hinman emails today has caused a stir. These emails shed new light on how the Securities and Exchange Commission (SEC) classified Ethereum at the time - as not a security. The implications of this revelation for Ripple, however, remain uncertain.

The statements made by Bill Hinman, the former director of the SEC, play a crucial role in public perception. In 2018, Hinman publicly expressed that both Ethereum and Bitcoin should not be classified as securities.

Since late 2020, Ripple Labs and its founders have been embroiled in a legal battle as the SEC claims that XRP is a security. Ripple's defense relies on Hinman's speech, arguing that what applies to Ethereum should also apply to XRP.

The now publicly accessible emails exchanged by Hinman and his colleagues are of great interest. They clearly indicate that the SEC did not consider Ethereum a security. It is important to note that these emails reflect the state of affairs at that time. In 2018, the SEC believed that Ethereum was not a security, despite the involvement of the Ethereum Foundation in the background. The SEC takes into account a multitude of details before making a final determination.

However, the emails do not necessarily favor Ripple's defense. They also reveal that all of the SEC's statements were based on the knowledge available at the time. It was also widely known that the SEC had reached out to Ethereum co-founder Vitalik Buterin prior to the speech.

In summary, the released emails do not contain any new revelations. Nevertheless, they provide material that supports the defense's arguments.

How does Ripple assess the documents? Ripple argues that Hinman misled the public with his speech, despite being warned by his colleagues. Hinman indicated that a cryptocurrency is not a security if it is sufficiently decentralized.

Therefore, Ripple questions the charges, as the SEC seemingly does not follow clear rules and used criteria other than the Howey Test for Ethereum's evaluation. The defense paints a picture in which Hinman arbitrarily modified the criteria on his own.

It remains to be seen whether the court will follow this portrayal, as the speech and the accompanying documents are not the sole factors at play in the proceedings.