Ripple vs. SEC: Discovery of New Letters Challenges XRP’s Security Status
Previous Ripple filings, according to crypto attorney and XRP advocate John Deaton, contain evidence of this. Deaton needed clarification as to why Ripple’s legal team had not emphasized the importance of the email.
According to the email mentioned in exhibit 220, there are reasonable reasons to reject XRP as a security because it failed the Howey test. There are “reasonable reasons to conclude that XRP does not meet all of the elements of the Howey Analysis and is therefore not a ‘safety’ for purposes of federal securities law,” according to the email.
The SEC’s case against Ripple is based on the argument that XRP and most cryptocurrencies should be classified as securities because they meet the definition of the Howey Test. 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 may be referring to someone else’s XRP analysis. Another pro-crypto attorney, Bill Morgan, believes the letter was most likely sent by an SEC attorney. Morgan speculated, “Most likely an SEC lawyer, given how many were involved, and commenting on Hinman’s speech, expressed his personal opinion.”
Meanwhile, all of this is still speculation, which many believe will be clarified when the SEC releases Hinman’s emailed documents. Ripple has made several announcements this past 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 efforts to “focus on growth opportunities outside the United States.”
The cryptocurrency payments company confirmed that its CBDC Platform is compatible with XRP Ledger (XRPL) and XRP tokens. 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 XRP price increased by 55.5%.
