Judge denies SEC’s motion to withhold key documents in Ripple case

For SEC vs Ripple, the latest Submission to court Judge Netburn has indicated that he has dismissed a motion to withhold internal documents by US securities regulators.

These documents relate to a speech by William Hinman, then Director of Corporate Finance, on June 14, 2018.

During the speech Hinman He said he was exempt from registration under US securities law because neither of them fits the characteristics of securities, and gave a green light to Bitcoin and Ether.

In the motion, the SEC argued that the document was: Lawyer / Client PrivilegePrevents confidential communications between lawyers and clients from being disclosed to third parties.

However, Judge Netburn said that the SEC saidIn-camera review.. This refers to the process by which the presiding judge examines sensitive or confidential information to determine whether that information will be used or disclosed by the parties.

Judge Netburn withdraws claim of attorney / client privilege

To apply the attorney-client privileges, the attorney-client relationship must be proven, the contact must be confidential, and the “main purpose” of the contact is to seek or provide legal advice. Said to do.

According to Filing, in his position as director, Hinman was the client of the SEC lawyer, seeking legal advice in drafting and editing the speech, and arguing that the document was confidential.

However, Judge Netburn proves that Hinman is a “client” of SEC lawyers, as evidence shows that the main purpose of the communication is not to provide legal advice. He said it wasn’t necessary.

In addition, the judge accused the attempt to withhold the document as “hypocrisy.” In it, the agency argued that Hinman’s speech had nothing to do with the market understanding of cryptocurrency regulation, while Hinman sought legal advice in drafting the speech.

Ripple case boost

Filing added that communication between Hinman and SEC lawyers was more accurately categorized as “policy advice,” such as whether the statement was a good idea or a bad idea.

“The law is determined by policy advice, such as whether it is a good idea or a bad idea to make a particular public statement as a public figure, or communication advice, such as whether the statement is based on the position of a government agency.”

Judge Netburn wrote that policy advice differs from legal advice, even if the advice comes from a lawyer. As a result, communication between Hinman and SEC attorneys regarding speech is not protected under attorney / client privileges.

The judge ordered the SEC to submit the requested document for an in-camera review.