The cryptocurrency sector is expected to witness three major court events today. Following their outcomes, the industry could experience a fundamental change. The first legal event is the hearing of the motion regarding the seizure of Binance assets in the District of Columbia.
The second event is the anticipated release of the Hinman Speech documents in the Southern District of New York. The third court event is the Securities and Exchange Commission’s response to Coinbase’s petition in the Third Circuit.
Release of Hinman Speech Documents in Ripple And SEC Lawsuit
The SEC vs Ripple is one of the legal battles in the crypto space that has lasted for a long. On December 2020, the SEC sued the blockchain firm and some of its executives for offering the XRP token as unregistered securities.
Ripple, on its part, has maintained a strong position that XRP is not a security. The defendant anchored its motion on Hinman’s documents, containing the speech by the former director of SEC’s Division of Corporation Finance.
However, the SEC opposed the release of the documents. But the court ruled against SEC’s motion, allowing the documents to be released.
According to a recent report, the court session in the SDNY ruled for the release of the Hinman documents. During his speech in 2018, the former SEC director hinted that Ethereum could not be classified as a security.
The Hinman emails help @coinbase, #ETH and @Ripple’s fair notice defense. How much it helps anyone in a courtroom is yet to be seen. But in the Court of Public Opinion and in Congress, the emails should help drive attention to how hypocritical and reckless the SEC is being. https://t.co/kdYOSsh2RX
— John E Deaton (@JohnEDeaton1) June 13, 2023
The release of the speech could bring more clarity in the industry regarding the legal definition of crypto. It could serve as a precedent for other challenges in the crypto space and may change the price trend for ETH and other tokens.
Also, the hearing on the motion for the possible seizure of Binance assets in DDC could create a landmark in the crypto space. This is because Binance, as the largest global crypto exchange, has made great achievements in digital assets. So, any disruption in Binance operations and functionalities could impact the overall crypto market negatively.
Cryptocurrency Exchange Coinbase’s Petition Against SEC
The US largest crypto exchange Coinbase petitioned the SEC to clarify its regulatory measures regarding lending programs for cryptocurrency. The SEC’s response to the case is slated in the Third Circuit.
Coinbased petitioned the SEC formal rulemaking in the cryptocurrency sector. The exchange stated that the SEC requests ill-suited requirements for digital assets in the jurisdiction.
The US Court of Appeals for the Third Circuit demanded that the SEC explain its position on the petition within seven days. Meanwhile, the Hinman document has been released as slated today, raising a lot of speculations and arguments in the industry.
Notably, XRP price tanked after the document emerged while its trading volume skyrocketed. Currently, the industry awaits further developments to unfold following the recent events.