Stuart Alderoty, General Counsel of Ripple, said the US Securities and Exchange Commission’s assertions have repeatedly changed over the two-year legal dispute in a tweet on Sunday, referring to the SEC as “the bouncing regulator.”
As part of this tweet, Alderoty highlights two comments from the SEC, the first of which claims that the Howey test determines whether an investment contract qualifies for investment protection, and the second of which suggests that the Hinman speech should guide market participants.
It’s important to note that a legal dispute has been raging over the documents about the draft of the controversial William Hinman speech in 2018. At the time, Hinman, an SEC director, claimed that Ethereum and Bitcoin are not securities. The SEC initially brushed off the speech as being Hinman’s personal beliefs and not representative of the SEC’s position.
Ripple, on the other hand, held a different opinion and asked the regulator to turn over emails and documents linked to the speech’s drafting. However, the regulator finally gave the records to Ripple after repeatedly rejecting their requests from Judges Sarah Netburn and Analisa Torres, citing attorney-client confidentiality.
Alderoty claimed that Ripple’s case had gained significant momentum when he confirmed the development in October. According to Alderoty’s citation of the SEC’s redacted response to Ripple’s response to its motion for summary judgment, the SEC now seems to have changed its mind about the significance of the Hinman speech.
Interestingly, the SEC implied that Ripple wasn’t sincere with the court after Alderoty tweeted the regulator to confirm that it responded to Ripple’s summary judgment application.
Notably, Judge Analisa Torres’ decision is all that remains in the two-year legal struggle. James Filan, a pro-Ripple lawyer, anticipates that this decision will be made by the end of March 2023, as was previously announced.