The blockchain company noted that it needed more time to respond to the SEC’s claim that Hinman’s 2018 speech is protected by attorney-client privilege.
Popular blockchain network Ripple and two of its executives, Brad Garlinghouse and Chris Larsen, have requested for an extension of time to respond to recent assertions made by the Securities and Exchange Commission (SEC) about the fact that the attorney-client privilege protecting its internal documents related to William Hinman’s 2018 speech.
Ripple’s response is originally due on May 4, 2022; however, based on the seriousness of the issue at hand, the blockchain company and the Individual Defendants have asked for a time extension until May 13, 2022.
#XRPCommunity #SECGov v. #Ripple #XRP Ripple Defendants request an extension of time until Friday May 13, 2022 to respond to the SEC’s letter brief setting forth its assertions that the Hinman documents are protected from disclosure by the attorney-client privilege. pic.twitter.com/dMiX7Xjy1O
— James K. Filan 🇺🇸🇮🇪90k+ (beware of imposters) (@FilanLaw) May 2, 2022
According to Ripple, the Plaintiff does not have any issue with the fintech company’s appeal to file a response to the assertion made by the SEC on a later date since “this is [the] Defendant’s first time of asking for an extension.”
SEC Objects Judge Netburn’s Ruling
Recall that Judge Sarah Netburn ruled that the Securities and Exchange Commission should submit the internal documents, which contained a draft speech made by the SEC’s former Director of Finance, Hinman, on June 14, 2018, where he noted that Ethereum is not a security.
The SEC was given a 14-day period to object to the ruling should they not feel comfortable with the court’s decision.
After requesting a four-day time extension, the securities regulators came up with a new reason why the document should not be used as evidence in the lawsuit.
Per the SEC, the documents Judge Netburn ordered the agency to produce reflected communications between Hinman and the agency’s attorneys, and as such the conversation is expected to remain confidential.
SEC Poised to Keep Hinman’s Documents from Ripple
Prior to the SEC’s objection, the securities regulators had argued that Hinman’s 2018 speech about Ethereum was only a personal opinion and could not be used as public guidance.
However, with the court not buying the story, the SEC chose to establish a new argument, with the hope that Judge Analisa Torres would reconsider Ripple’s plea to keep Hinman’s documents from being used in the case.
Although Ripple may not like the idea of requesting an extension of time, it is imperative that the blockchain company carefully respond to the SEC’s recent assertion because Hinman’s 2018 comment is seen as a vital instrument that could potentially put an end to the lawsuit.
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