Internal emails recently discovered from the U.S. Securities and Exchange Commission (SEC) have raised concerns for the case against Ripple, according to former Director of Developer Relations at Ripple, Matt Hamilton.
Hamilton has expressed that the situation “looks pretty bad” for the regulator. However, he also noted that the outcome of the lawsuit may not align with expectations due to the complexities of the U.S. regulatory and legal system. Despite Ripple potentially being in the right, there is still a possibility that the SEC could prevail in the legal battle.
In our hearts we all knew this, but alas that doesn’t reflect the vagaries of the US regulatory and legal system. We could still be right, but the SEC could still win the case.
— Matt Hamilton (@HammerToe) May 21, 2023
The recent findings in legal filings have cast doubt on whether Ripple’s cryptocurrency, XRP, meets all the criteria to be classified as a security. The argument suggests that XRP does not fulfill all the factors outlined in the Howey Test, a test used to determine whether an investment contract qualifies as a security.
However, John Deaton, representing XRP holders, speculates that the quote found within the unsealed emails may not be a direct statement from an official within the SEC but rather a reference to another individual’s analysis.
The discovery of these internal emails carries significant implications for Ripple and its ongoing legal dispute with the SEC. If XRP is ultimately not classified as a security, it could have far-reaching consequences for the entire cryptocurrency industry. However, due to the intricate nature of the legal framework surrounding digital currencies, the final outcome of the lawsuit remains uncertain.
As the case continues to unfold, industry participants and digital asset enthusiasts are eagerly anticipating further progress. The ultimate determination regarding XRP’s classification will undoubtedly shape the future of the cryptocurrency industry and may have an impact on the regulatory frameworks surrounding digital assets as a whole.
Read more:
- Internal SEC Emails Suggest XRP May Not Meet Security Classification
- Ripple CEO Reveals Plans To Prioritize Hiring Outside The U.S. Amidst Regulatory Uncertainty