Hinman’s deposit, previously scheduled for July 19, has now been postponed to July 27.
The motion filed by Ripple earlier this month was approved by U.S. judge Sara Netburn last week. Despite the SEC’s vigorous efforts, she lost the defense to Ripple as the court ruled in favor of the defendant.
A little background to the deposit request:
The dismissal found that William Hinaman[former director of SEC’s Division of Corporate finance] First-hand knowledge potentially relevant to the lawsuit and useful insights into the agency’s position on XRP and how it differentiates the token from Bitcoin and Ethereum could also be gained.
What led to William Hinman’s disposition is his 2018 speech in which Hinman stated that Ethereum is not a security. Based on the speech, Ripple not only filled out the deposit application, but also filed a “fair announcement” motion against the agency, arguing that the SEC did not communicate that they differentiate XRP from Ethereum.
Although the SEC argued against the motion for telling the court that Hinman was the agency’s senior official and for his testimony, the defendant was charged with bringing forward “exceptional circumstances.”
The SEC further argued that the testimony of a former Fed official would deter future Fed government candidates. The agency also asked the court not to rule on the subsequent motion until the “Fair Notice” motion is ruled, as that would render the statement irrelevant.
Judge Sara Netburn was not convinced by the arguments and stated that the SEC lawsuit against Ripple was not a “normal enforcement case”. and decided that Hinman’s 2018 speech was the “central question” of the hearing.
Newly planned deposit application:
The hearing, which was supposed to be on July 19th, is now postponed until July 27, as the court gave both parties time to decide the content of the deposition hearing.
Ripple’s attorney told Judge Sara Netburn on July 16:
“The parties have made significant progress in narrowing down and resolving the privilege issues and plan to hold additional meetings and discussions over the next few days to further narrow down and resolve issues related to the removal of Mr. Hinman, without affecting any party’s rights to renounce”