In the latest update regarding Ripple Labs, an attorney has stated that if the ongoing court battle between Ripple and the US Securities and Exchange Commission (SEC) proceeds to a jury, it could potentially be a game-changer for the US watchdog. This assertion comes in light of the attorney discovering references to SEC emails in the legal documents and arguments presented by Ripple throughout this enduring legal dispute.
John Deaton, a lawyer supporting the cause of XRP, has closely followed the SEC vs. Ripple case since its initiation in 2020. He suggests that the recently revealed email details indicate that certain SEC staff members may have acknowledged “reasonable grounds” to consider XRP as not being a security.
The emails, specifically referenced as “exhibit 220” in Ripple’s submissions, have become a focal point of attention in the case. Ripple’s legal strategy aims to demonstrate that XRP does not satisfy all the factors outlined in the Howey test, which is used to determine whether an asset qualifies as a security under US law.
The legal dispute between Ripple and the SEC commenced in December 2020 when the SEC filed a complaint, claiming that Ripple had violated federal securities laws through the unregistered sale of XRP as a security. Ripple has vehemently refuted these allegations and has counter-accused the SEC of exceeding its authority or acting beyond its proper jurisdiction.
SEC staff states that there are reasonable grounds to believe XRP is NOT a security
— John E Deaton (@JohnEDeaton1) May 20, 2023
THAT’S BY SEC ENFORCEMENT LAWYERS PEOPLE!
But the SEC charges @bgarlinghouse and @chrislarsensf with Recklessness because it’s so obvious that XRP is a security?
Absolutely shameful. https://t.co/5YMPYfLS1o
Former Ripple Executive Highlights SEC’s Possible Triumph
The release of the Hinman emails, as ordered by Judge Torres, has introduced new possibilities that the community is considering as they await the highly anticipated summary judgment. Expressing an unpopular opinion, former Ripple Labs executive Matt Hamilton acknowledges that while it is evident Ripple has a fighting chance against the SEC, there is still a significant likelihood that the SEC could emerge victorious in the case.
Hamilton shared,
In our hearts we all knew this, but alas that doesn’t reflect the intricacies of the US regulatory and legal system. We may still be in the right, but the SEC could still come out on top.
The SEC’s ongoing lawsuit against Ripple Labs has taken a dramatic turn with the emergence of SEC emails suggesting that XRP may not meet the criteria to be classified as a security. These new developments have injected fresh momentum into the legal battle and raised hopes within the Ripple community.
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