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In June of 2018 the then SEC official William Hinman gave an all famous speech in which he indicated that "a token all by itself is not a security........Currently the Bitcoin and Ether networks are sufficiently decentralized that the disclosure regime of the federal securities laws seem to add little value. Over time, other networks may be sufficiently decentralized such that the tokens that function on them may not need to be regulated as securities.".
Fast forward to July 2021 Ripple Labs have requested the deposition of former SEC official Mr Hinman regarding his commentary on crypto & securities. The Security Exchange Commission immediately opposed the deposition and fought it tooth and nail, because well need I say the obvious. It was previously thought that if the judge ruled with the defendant (Ripple Labs) the SEC would move to avoid Mr Hinman's testimony altogether and try to settle with Ripple Labs.
As it turns out the judge has decided to rule in the defendants favour, but under strict conditions. Both parties will now have to agree on the terms of the deposition as set out by judge Netburn. Now that Netburn will muzzle Ripple's Labs during the deposition (to some degree), restricting what may be asked of Hinman.
However if the defendant plays their cards right and Hinman doubles down on his previous commentary, which is likely to play out in Ripple's favour this could be game over for the SEC.
