After months of fighting for the release of the documents accompanying a famous speech by a top SEC official, these have finally seen the light of day. In doing so, they have caused a huge stir in the cryptocurrency community.
Hinman documents revealed
The potential qualification of XRP’s status as a security triggered a new wave of controversy following the publication of the Hinman Documents. Since the disclosure of these facts, experts in the cryptocurrency industry have been carefully studying every page, and among the new findings, one key conclusion has emerged that flashes gently between the lines. Namely, the conclusion states that XRP does not meet all the criteria of the Howey test and therefore cannot be considered an investment contract or a security.
The U.S. Securities and Exchange Commission (SEC) fought hard to keep all records related to this controversial speech secret. The documents were released on Tuesday, June 13, after seven court orders. Experts reviewing them were tempted to make observations that SEC officials were themselves largely unsure how to classify XRP. This uncertainty was with them even when they decided to sue Ripple Labs and its executives. An internal SEC document unequivocally states that in light of the Howey test failure, “there are reasonable grounds for concluding that XRP should not be considered an ‘investment contract’ or a ‘security’ under the Securities Act.”
Ripple has won an important battle
One of the key reasons for the SEC’s decision to keep Hinman’s documents secret from the public to date has allegedly reflected Hinman’s own opinions, rather than the agency’s position. While the disclosed insights showed conflicting positions, they will not necessarily affect the outcome of the trial. Nevertheless, the revelations from the speech will shape a widespread and enduring public perception that could damage the credibility of the SEC’s enforcement actions and raise the stakes in the hotly anticipated summary judgment ruling by Judge Analisa Torres.
XRP’s price reaction
The disclosure of the Hinman documents was something the market had been anticipating for a long time, and as a result, it was priced in early by the market, in the form of rising XRP values. Nevertheless, the moment of disclosure resulted in an additional sudden increase of nearly 7% in the coin’s value. The subsequent price action caused the XRP price to close the trading session at a negative 1.2%. Currently, XRP is oscillating slightly above $0.50. This is a wide space between support at $0.45 and resistance at $0.58.