The controversial lawsuit between Ripple, the company behind the XRP cryptocurrencyand the US Securities and Exchange Commission (SEC) is lagging behind. The SEC is currently suing Ripple for the illegal sale of values, or securities, with XRP. The main issue in the lawsuit is whether XRP should be labeled as a security due to the centralized nature of the business and crypto.
Now the SEC wants the judge to file a motion of Ripple’s lawyers to sue William Hinman, former head of the SEC. Hinman once said that ethereal (ETH), or rather ether, are not effects. Lawyers may want to find out what the criteria are for this, although it seems to be primarily the degree of centralization.
The SEC is challenging the motion because the regulator is concerned it sets a dangerous precedent. According to the SEC, this could mean that Hinman and other officials are being sued by a number of companies that have violated securities law:
“Allowing defendants to have Director Hinman testify would likely result in Director Hinman receiving multiple subpoenas from the many other individuals who allegedly violated the registration provisions of the securities laws during his tenure at the SEC.”
It would also set a precedent, according to the SEC, that would deter potential candidates from filling high-level positions at the SEC in the future for fear of being embroiled in lawsuits for years:
“Such an outcome would not only impose a significant burden on Director Hinman, but would make other qualified individuals reluctant to fill high-level positions at the SEC for fear of engaging in lawsuits for years after their terms of service.”
Additionally, the SEC is cracking down on the infamous “XRP Army,” a group of noisy XRP fanatics. The SEC accuses these fans of using social media platforms to spread false rumors about SEC officials. For example, SEC officials like Hinman are regularly portrayed by the XRP Army as lizard people.