Why was Hinman’s deposition moved in the XRP lawsuit?

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The deposition of William Hinman, a former Securities and Exchange Commission [SEC] Director of Corporate Finance, has been rescheduled for July 27, 2021. The same meeting was originally set for Monday, but both parties, Ripple and the SEC, want to hold another meeting in the coming days to focus on the problems surrounding Hinman’s deposition.

According to a letter sent to U.S. Magistrate Judge Sarah Netburn, Ripple and SEC agreed to postpone the said testimony after making “substantial progress in narrowing and resolving the privilege issues.” Attorney James K. Filan provided the letter that the parties submitted to the Court, and noted,

As per the said document,

“At your direction, the parties met and conferred this morning on the privilege issues that arose during yesterday’s hearing on the motion to quash the deposition of William Hinman. Based on this morning’s discussions, we have agreed to adjourn the July 19, 2021 deposition of Mr. Hinman, and have rescheduled the deposition for July 27, 2021.”

Ripple and the SEC must return to court by 5.00 p.m. on Monday to update them on the progress of their negotiations and determine whether further judicial action is required. Hinman’s testimony was set for June 30th, but the SEC sought to block it, arguing Ripple had failed to show the “exceptional circumstances” required to warrant the deposition of a high-ranking government employee.

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Ripple, on the other hand, said that his testimony would give a “critical window into the agency’s communications with important third parties about the regulatory status of cryptocurrencies.”

Ripple expects that the hearing will provide insight on the SEC’s stance on Bitcoin, Ethereum, and XRP, as well as support its case that it did not get a “fair notice” about the SEC treating XRP differently from other cryptos. Hinman is significant in this story because of his 2018 statement in which he stated that the SEC did not consider Bitcoin and Ether to be securities.

As the two parties debated these concerns, XRP investors awaited Hinman’s testimony with bated breath. Meanwhile, the digital asset’s value has stayed down, at $0.5835 as of press time.

 

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