The SEC may have known that XRP did not completely fit its definition of security, according to an email discovered by pro-Ripple attorney John Deaton.
The U.S. Securities and Exchange Commission (SEC) may have known that XRP did not entirely fulfil the definition of a security, according to documents obtained by Leaks.
John Deaton, a crypto lawyer and XRP advocate, drew attention to this in Ripple’s previous filings. Deaton was perplexed as to why the legal department at Ripple did not stress the significance of the email’s consequence.
Exhibit 220 contains emails arguing that there are valid reasons to reject XRP as a security because it fails to meet the Howey test.
According to the text of the email, 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.” This means that the cryptocurrency does not fall within the definition of “security.”
The Howey Test is central to the SEC’s case against Ripple, which contends that XRP and other cryptocurrencies should be regulated as securities.
Therefore, it would be devastating for their argument if the SEC or an SEC officer admitted in internal records that XRP is not a security.
Deaton speculated that the SEC employee may have been paraphrasing or paraphrasing someone else’s analysis of XRP, rather than making a straight quotation.
Bill Morgan, another pro-cryptocurrency lawyer, suggested the sender was likely an SEC lawyer. Until the SEC reveals the emails related to the Hinman papers, all of this remains conjecture.
Ripple has made a number of platform expansion-related announcements throughout the last week. The Swiss custodial business Metaco was acquired by Ripple for $250 million. CEO Brad Garlinghouse said that the acquisition was made in order to “focus on growth opportunities outside the U.S.”
The digital currency payment provider has validated that the CBDC Platform is compatible with the XRP Ledger (XRPL) and the XRP token.
According to BeInCrypto, XRPL’s daily address count increased by 13.9% in Q1 2023 compared to the fourth quarter of 2022. Meanwhile, the volume of daily transactions on the network surged by 10.7 percent and the value of XRP rose by 55.5 percent.
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