Amicus Curiae attorney John E. Deaton responded to a Steven Nerayoff post about Ethereum, saying,
“This certainly raises questions regarding the due diligence Hinman testified about performing before granting the free pass. Why hasn’t the SEC turned over the emails and documents sought by the Empower Oversight US lawsuit?”
Empower Oversight is a US government watchdog that has taken a keen interest in the SEC v Ripple case.
In 2021, Empower Oversight sued the SEC, alleging that former SEC officials were biased against Ripple Lab and XRP. Since the original filing, Empower Oversight filed a Freedom of Information Act (FOIA) request in December 2022, a request for the court to force the SEC to comply with the FOIA request, and a second FOIA request in May 2023.
The May 2023 FOIA requests for communications about its referral of evidence to the Inspector General (IG), pointing to ethical violations and related litigation. The May 2023 filing referred to the December 2022 FOIA request. The request related to conflicts of interest and selective enforcement by former high-level officials regarding cryptos.
It is worth noting the Hinman documents have been a focal point in the SEC v Ripple case. The SEC made at least six attempts to shield the speech-related documents under attorney-client privilege. However, the court rejected the SEC motions on each occasion.
In a 2018 speech, former SEC Director of the Division of Corporation Finance Bill Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
Hinman’s connection with Simpson Thacher led to the intense scrutiny of the speech. Simpson Thacher is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.
The SEC could come under increasing scrutiny if the Hinman docs become a feature in the final court ruling.
XRP Price Action
XRPUSD 181123 Weekly Chart
XRP remained above the 50-day and 200-day EMAs, reaffirming bullish price signals.
An XRP return to $0.62 would give the bulls a run at the $0.6354 resistance level. A break above the $0.6354 resistance level would bring the $0.65 handle into play.
Chatter relating to the ongoing SEC v Ripple case remains the focal point.
An XRP fall through the trend line, and the 50-day EMA would bring the $0.5835 support level into view. Buying pressure may intensify at $0.5880. The 50-day EMA is confluent with the trend line.
The 14-day RSI reading of 48.70 suggests an XRP fall to the trend line before entering oversold territory.
XRPUSD 181123 Daily Chart
In the 4-hourly Chart, XRP remains below the 50-day EMA while holding above the 200-day EMA, affirming bearish near-term but bullish longer-term price signals.
An XRP return to $0.62 would support a break above the $0.6354 resistance level and the 50-day EMA.
However, a fall through the 200-day EMA would give the bears a run at the trend line.
The 4-hourly RSI, with a reading of 40.97, suggests an XRP fall through the 200-day EMA before entering oversold territory.