District william hinman ethereum

district william hinman ethereum

SEC sued Ripple Labs, and its executives Brad Garlinghouse and Christian Larsen.

The issue centred on allegations that the company raised more than $1.3bn “through an unregistered, ongoing digital asset securities offering.”

This time US District Court Judge Analisa Torres ruled that the SEC had plausibly argued that the XRP digital coin amounted to the unregistered sale of securities.

XRP to US dollar

Celsius Network

Celsius has a $1.2b hole in its balance sheet, according to a recent court filing from the crypto lender’s advisory partner Kirkland & Ellis.

The crypto lender filed for voluntary bankruptcy in the US citing ‘extreme’ market conditions, leaving its 1.7 million customers unable to redeem their assets.

As a result the network’s native token CEL saw a series of wild price gyrations as investors confidence ebbed and waned.

Whether the speech was or wasn’t adopted by the SEC is something that Ripple contests.

If the speech in fact reflected agency policy, “then that really heightens the impact of that speech for Ripple’s fair notice,” Ripple’s counsel argued when it was seeking to take Hinman’s deposition last year.

In 2018, those who practiced in the field “were desperate for some guidance—any guidance—from the SEC or its staff,” Daugherty told Bloomberg Law.

He said he told an SEC staffer as much while at the Ray Garrett Institute at Northwestern University, held about two months before Hinman’s San Francisco speech.

She replied that he was “working on a statement that he would be delivering soon, as indeed he did.


Cryptocurrency prices were edging higher early Tuesday morning with Ethereum topping the $3,000 mark for the first time in two weeks.(REUTERS/Dado Ruvic/Illustration / Reuters)

The official, corporation finance chief William Hinman, argued in the speech that all digital coins except bitcoin and ether were possibly illegal and unregistered securities subject to SEC action. Not long after, the SEC charged Ripple with selling unregistered XRP tokens.

In arguing the case, the SEC initially stated Hinman’s speech was the opinion of one official, not designed to give market guidance by the commission.
The agency has since changed its position on the nature of Hinman’s speech when Judge Netburn demanded all documents relating to the creation of the speech be handed over to the court.

The SEC told the Judge the deliberative process privilege also known as “Exemption 5” would be invoked if Hinman was deposed.

Judge Netburn stated that this was not a “run-of-the-mill SEC enforcement case,” adding that Hinman’s deposition wouldn’t “open the flood gates.” She continued to state that the case “involves significant policy decisions in our markets, the amount in controversy is substantial and the public’s interest, in this case, is significant”.

In December 2020, the SEC filed a lawsuit against Ripple alleging the firm, CEO Brad Garlinghouse and co-founder Chris Larsen, had been conducting an “unregistered, ongoing digital asset securities offering” with their XRP token sales.

In late June the SEC accused Ripple aficionados otherwise known as the ‘XRP Army’ of issuing ‘false statements’ against its leadership on social media.

San-Francisco-based fintech firm Ripple has notched up another small victory in its ongoing battle with the U.S. Securities and Exchange Commission.

U.S. District Court Judge Sarah Netburn has denied the SEC’s motion to suppress the deposition of the former director of the SEC’s Division of Corporation Finance, William Hinman, in a ruling in New York on Thursday.

In June 2018, Hinman said in a speech that based on his understanding of the Ethereum network and its decentralized structure the “current offers and sales of Ether are not securities transactions.”

The deposition may add more weight to Ripple’s claim that the XRP token is not a security.

Creditors were late to realise that 3AC was collapsing as insolvency was only reported in mid June.

Co-founder Zhu Su used borrowed money to make luxury purchases including a yacht and property which was likely used to indicate creditworthiness of 3AC.

The co-founders went MIA but recently broke their silence by saying they will be moving 3AC to Dubai to see whether the firm has a future.

3AC’s default on debts caused a knock on impact on both the Celsius Network and Voyager Digital.

Solana (SOL)

In California, a SOL investor filed a suit against Solana’s team and its venture capitalist backer Multicoin Capital for unlawfully making ‘enormous profits’ through the sale of the tokens to retail investors.

SOL to US dollar

The suit claims that the sale of SOL securities constituted “the sale of unregistered securities under controlling federal law.

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Jay Clayton, the Chairman of the United States Securities and Exchange Commission has confirmed statements made by SEC analysts in 2018 that not all cryptocurrencies are securities. The head of the regulatory agency also highlighted the need for a more nuanced discussion about what constitutes a security in the eyes of the SEC as far as the emerging cryptocurrency landscape.
Clayton also praised the Commission’s transparency in dealing with matters relating to the regulatory status of cryptocurrencies in the United States.

Not All Cryptocurrencies are Securities

In a letter dated March 7, 2019, Clayton responded to inquiries earlier made by Rep. Ted Budd, R-N.C., concerning comments made by William Hinman, the head of Corporate Finance at the SEC, in mid-2018.

The SEC doesn’t get to make up the law in order to satisfy a political desire to regulate a new evolving asset class.

The SEC’s theory regarding XRP is the functional equivalent of arguing the oranges in Howey were not only oranges but also “represented” the embodiment of the investment contract with the W.J. Howey Company. The SEC’s argument is tantamount to legal gobbledygook.

Current SEC Commissioner Hester Peirce seems to agree. The SEC’s precarious expansion of Howey, as applied to XRP, is so intellectually dishonest that Commissioner Peirce publicly criticized the SEC’s theory when she stated: “What we’ve done now is said the orange groves are kind of like the security.”

Personally, I believe the SEC lawyers have crossed an ethical line and lack the good faith required to make such an absurd argument.

The plain implication of her comment was that the Bar would have guidance that it could rely upon in advising clients,” he said.

After former SEC Chairman Jay Clayton testified on Capitol Hill a couple of weeks later and referred to Hinman’s speech “in a manner that was obviously intended as an endorsement,” lawyers in the field understood that they “could rely on what the SEC’s Chairman had to say as well as what the Director of Corp Fin had to say,” Daugherty said.

“There was no daylight between their views,” he said.

According Daugherty, the bar “always” relies on speeches and other informal communications by SEC officials. “I learned this myself while working at the SEC.

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