Update on the XRP Lawsuit: Ripple and the SEC have reached a ‘understanding,’ but why?

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In regards to the impending Hinman deposition, Ripple Labs and the US Securities and Exchange Commission [SEC] have reached a “agreement.” After making “significant progress in narrowing and resolving the privilege problems,” the two sides agreed to postpone the former executive’s hearing.

The court had previously given the parties until Monday evening to achieve a “understanding,” and according to their most recent statement, they have reached an agreement on the scope of the Hinman deposition. The identical event will now take place on July 27.

A joint letter informing the same was submitted to U.S. Magistrate Judge Sarah Netburn.

The parties have made “substantial headway” in considering the claims and challenges to privilege that may apply to Hinman’s evidence, according to the letter. It went on to say,

“We have reached an understanding, reflecting a compromise by all parties, pursuant to which the Defendants may examine Mr.Hinman on various issues without triggering a privilege objection from the SEC. Based on our discussions, the parties do not currently believe it will be necessary to seek the Court’s assistance prior to Mr. Hinman’s the deposition.”

After Hinman’s evidence and the information gleaned from it, it’s evident that the court’s intervention will be crucial. As a result, the two parties have agreed to “reserve” their rights to seek more direction from the Court prior to the deposition. This includes, for example,

“…invoking rights under Fed. R. Civ. P. 72, posing questions to Mr. Hinman, making objections or giving instructions to Mr. Hinman during the deposition, and filing motions after the deposition.”

It’s worth emphasising, though, that this is merely the first part of the debate; the true back-and-forth won’t begin until Hinman gives his evidence. Indeed, the community is already speculating on the cause behind the two parties’ “agreement,” with one Twitter user suggesting,

Others, on the other hand, believe Ripple has something in its sleeve to “trap Hinman” during the deposition.

While many XRP supporters continue to support Ripple and the defendants, many others are wary of the SEC’s motives. As a result, Hinman’s testimony may be the only way to clarify the air and determine the course of the litigation in the coming weeks.

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