Unsealed SEC documents revealed concerns about Bill Hinman statement on the security status of Ether (ETH). The documents provide insights into the matter. Editors expressed concern that Hinman’s remarks might undermine the classification of Ether as a security. This could potentially limit the agency’s ability to change its position in the future.
The edited documents highlight the challenge it might face in changing its stance on Ether. The paragraph implies that the same thinking applies to Ether, making it difficult for the SEC to change its position later. This creates a challenge for the agency’s future stance. The Hinman documents pertain to internal SEC messages discussing a 2018 speech. In the speech, Hinman suggested that cryptocurrencies like Bitcoin and Ether could transition from securities to commodities as decentralization increases.
In response to the unsealed documents, Ripple CEO Brad Garlinghouse commented that they would prove to be highly significant and well worth the anticipation. Since December 2020, Ripple has faced a legal battle with the SEC. The agency claimed that the sale of Ripple’s XRP token violated securities registration requirements. Ripple maintains that XRP fails to meet the Howey test criteria and should not be classified as a security. They argue against its security designation.
The release of these documents coincides with a turbulent period for the cryptocurrency industry, as the SEC moves to freeze the assets of Binance.US and ongoing legal actions against the exchange. These developments are closely watched by industry participants and stakeholders.