Ripple records major victory with William Hinman deposition authorized in SEC case

Ripple has scored another victory in its battle with the United States Securities & Exchange Commission (SEC) over the latter's $1.3 billion lawsuit. 

SEC motion to quash Hinman deposition denied

A recent ruling by the US District Court Judge Sarah Netburn denied the SEC’s motion to quash a deposition of a former agency official. 

Ripple Labs sought to question former SEC director William Hinman through a deposition originally scheduled for June 30. However, the securities regulator has sought to block Hinman from testifying, stating that the blockchain firm has failed to argue the “exceptional circumstances” required to justify the deposition.

The cross-border remittances firm believes that the deposition could help bolster its defense with Hinman’s statements on the agency’s stance on Bitcoin, Ethereum and XRP. 

According to Ripple, Hinman could provide “a critical window into the SEC’s communications with important third parties about the regulatory status of digital assets.”

In 2018, the former SEC official stated that Ethereum is not a security. Hinman’s ruling on ETH at the time was controversial, and he left the agency shortly after.

Moving forward, the blockchain firm would continue to convince the court that XRP should have a similar regulatory status as Bitcoin and Ether. Judge Netburn called Hinman’s speech on Ethereum three years ago “the central question” of the hearing.

The SEC responded in the hearing that Hinman was only speaking from his point of view, not representing the agency. However, the securities regulator admitted that the financial watchdog’s staff was involved in drafting the speech.

The judge ruled that the former SEC official must sit for the deposition following the agency and Ripple’s agreement on the scope. The blockchain firm’s fight with the regulator is still far from over.

XRP price strength diminished by prolonged consolidation

XRP price continues to be overpowered by the bears, as Ripple continues to consolidate within a declining technical pattern on the 12-hour chart.

While the 78.6% Fibonacci retracement level continues to act as support for XRP price, Ripple is unable to gain upward momentum with diminished interest seen from the declining volume.

XRP/USDT 12-hour chart

XRP price is locked below the 20 twelve-hour Simple Moving Average (SMA), struggling to reach a higher target if Ripple continues to trade below it.

While the prevailing direction given by the technical pattern is sideways, XRP price is vulnerable to a further drop toward the demand zone that ranges from $0.50 to $0.55 if selling pressure rises.