The SEC-Ripple dispute over the dismissal of one of the agency’s former directors continues while the SEC files another motion to prevent the court from approving Ripple’s proposed motion.
SEC urges the court not to grant Ripple’s motion for injunction:
In response to the defendant’s earlier letter to the court, the SEC attorney filed the response with U.S. District Court Judge Sara Netburn.
In the letter, attorney Ladan Stewart initially dismissed Ripple’s suggestion that the SEC should find a reason why they were trying to prevent the company from accepting their former official’s testimony.
Counsel Stewart stated that Ripple bears the heavy burden of demonstrating exceptional circumstances that could reasonably justify the need to remove William Hinman, the SEC’s former director for corporate and finance.
Stewart said the defendant wanted to question Hinman for hours to show the court that the federal agency is not qualified to invoke deliberative litigation privilege since federal prosecutors are instructing him[Hinamn] not to answer. The Federal Council also stated:
“This strategy is not an “exceptional circumstance” warranting the dismissal of a senior SEC official … as virtually every enforcement action by an agency involves privileged pre-enforcement and pre-decision consultation.”
Of note here is that in the earlier letter to Judge Sara Netburn, the Council asked the court to suspend Ripple’s dismissal motion, as the dismissal motion would become irrelevant if Ripple’s motion for adequate notification were granted.
Why Ripple Hinman Wants To Stop:
Despite the assumption that Ripple believes Hinman got some firsthand information about the lawsuit, the dismissal motion is essentially based on the speech Hinman gave at an event a few years ago.
In his speech, Hinman said; who was the SEC director at the time, said he believed Bitcoin and Ethereum were not securities. The question that Ripple has been asking for a long time is: To what extent and how does the agency differentiate XRP from BTC and ETH.
Of great importance here is that a few weeks ago Hester Peirce; one of the SEC commissioners stated that XRP doesn’t have to be a security and the lawsuit is only about the way the coin was sold.
Now it is quite plausible that such a statement, coming out of the ranks of the agency amid the above context, would certainly worry the SEC.