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SEC v. Ripple: Ruling slams regulator for hypocrisy - is disbarment next?

  • Judge Sarah Netburn called out the regulator’s hypocrisy and slammed them for hiding documents in the SEC v. Ripple case. 
  • Experts argue that the case is heading in a disbarment direction for some SEC attorneys as Judge Netburn questioned their faithful allegiance to the law. 
  • XRP price could break out past $0.36 in the event of a bullish cross of the 50-day EMA through the 100-day EMA. 

The US District Court rejected the US Securities & Exchange Commission's (SEC) request to withhold Hinman documents in the SEC v. Ripple case. Judge Sarah Netburn denied the SEC’s motion citing attorney-client privilege and slammed the agency for failing to act according to a “faithful allegiance to the law.”

Also read: SEC v. Ripple: Defendants and regulator in conflict over expert reports

Court denies SEC’s request to withhold Hinman speech of 2018

On July 12, Judge Sarah Netburn denied the SEC’s motion citing attorney-client privilege and deliberate process privilege. Judge Netburn slammed the regulator for hiding documents that could answer relevant questions in front of the court. She cited the behavior as egregious and said it impugns the agency’s “faithful allegiance to the law.”

The House Financial Services Committee holds an oversight hearing on the SEC Enforcement Division next Tuesday, and Chairwoman Maxine Waters has the opportunity to ask the regulator where their allegiance lies. Roslyn Layton, a senior contributor at Forbes, urged Congress to heed Judge Netburn’s words and ask the SEC whether their allegiance lies with the public and the law or their own personal interest. 

Payment giant Ripple centered its defense around Hinman’s market-moving speech that documents the SEC’s failure to provide fair notice to the market on XRP’s status. Since this revelation, the SEC requested to keep Hinman’s emails, speech drafts, calendar and related documents from his tenure under wraps, citing attorney-client and deliberate process privileges. 

In her decision, Judge Netburn wrote, 

[]...Hinman sought and obtained legal advice from SEC counsel in drafting his speech, suggests that the SEC is adopting its litigation positions to further its desired goal, and not out of a faithful allegiance to the law.

Disbarment of SEC attorneys in the cards?

An XRP proponent, Digital Asset Investor, shared their thoughts on Judge Netburn’s ruling against the SEC and argued that the case is heading toward disbarment for some SEC lawyers. The expert believes these comments from the ruling -  “the SEC is adopting its litigation positions to further its desired goal, and not out of a faithful allegiance to the law” - indicate the possibility of disbarment of some lawyers on the regulator’s side. 

XRP price could breakout to $0.45 if this happens

XRP price could witness a bullish breakout to $0.45 if the altcoin prints a 12-hour candlestick close above $0.36. At press time, XRP is changing hands at $0.36. If the second-largest altcoin fails to overcome the resistance barrier at $0.36, it could decline. 

FXStreet analysts argue that XRP could undo its gains on one condition. For price targets and more information, check this video:

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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