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Ripple vs. SEC: New Mail Discovery Challenges XRP Security Status

Ripple’s earlier filings, according to a crypto lawyer and XRP supporter John Deaton, contained this evidence. Deaton needed clarification as to why Ripple’s legal team did not emphasize the email’s significance.

According to the emails referred to in exhibit 220, there are reasonable grounds to reject XRP as a security because it fails the Howey test. There are “reasonable grounds to conclude that XRP does not satisfy all elements of the Howey Analysis and is therefore not a’security’ for purposes of the federal securities laws,” according to the email.

The SEC case against Ripple is predicated on the argument that XRP and most cryptocurrencies should be classified as securities because they meet the Howey Test definition. As a result, any admission by the SEC or its officials that XRP is not a security in its internal documents could be fatal to its case.

Deaton speculated that the statement was not a direct quote from an SEC official and that the official could be referring to someone else’s XRP analysis. Another pro-crypto lawyer, Bill Morgan, believes the mail was most likely sent by an SEC attorney. Morgan speculated, “Most likely an SEC attorney, given how many were involved, and commented on Hinman’s speech, expressing his personal opinion.”

Meanwhile, all of this is still speculation, which many believe will be clarified when the SEC releases the Hinman documents’ emails. Ripple has made several announcements in the last week, indicating that the company is committed to growing its platform.

Ripple paid $250 million to Swiss custody firm Metaco. According to the company’s CEO, Brad Garlinghouse, the purchase is part of the company’s effort to “focus on growth opportunities outside the United States.”

The cryptocurrency payment company confirmed that its CBDC Platform is compatible with the XRP Ledger (XRPL) and the XRP token. According to BeInCrypto, the number of daily addresses for XRPL increased by 13.9% in Q1 2023 compared to the previous quarter. Daily network transactions increased by 10.7%, while the price of XRP increased by 55.5%.

 

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