Ripple's legal team criticized for not highlighting this finding. The emails could have implications for the ongoing SEC case against Ripple. Pro-Ripple lawyer John Deaton uncovered this evidence and questioned why Ripple's legal team did not emphasize its importance in their defense against the SEC's case.
The emails, referred to as exhibit 220, argue that there are reasonable grounds to consider XRP as not satisfying the Howey test, criteria used to determine whether an asset is a security. The email states that there are grounds to conclude that XRP does not fulfill all elements of the Howey Analysis and, therefore, should not be classified as a security under federal securities laws.
This revelation could be significant in Ripple's legal battle with the SEC, as the case revolves around the argument that XRP and many other cryptocurrencies should be considered securities. Any indication in the SEC's internal documents that XRP does not constitute a security could weaken the regulator's case.
John Deaton suggests that the statement in the email may not be a direct quote from an SEC official, speculating that it could be a reference to someone else's analysis of XRP. Another lawyer, Bill Morgan, believes that an SEC attorney most likely sent the email, considering the involvement of several attorneys and their comments on a speech made by former SEC official William Hinman, which expressed his personal opinion on cryptocurrencies.
However, these are still speculations, and many are waiting for the SEC to release the emails related to the Hinman documents to provide clarity on the matter.
Amidst this development, Ripple has been making positive strides in advancing its platform. The company recently acquired Swiss custody firm Metaco for $250 million as part of its efforts to focus on growth opportunities outside the United States. Ripple also confirmed that it's Central Bank Digital Currency (CBDC) platform can interact with the XRP Ledger (XRPL) and XRP token, further expanding its ecosystem.
In the first quarter of 2023, XRPL witnessed a 13.9% growth in daily addresses compared to the previous quarter of 2022. Additionally, daily transactions on the network increased by 10.7%, and XRP's price grew by 55.5%, as reported by BeInCrypto.
While the uncovering of internal SEC emails indicating that XRP may not fully meet the definition of security is noteworthy, further clarification is needed. The community awaits the release of the SEC's emails related to the Hinman documents, which could shed more light on the matter. In the meantime, Ripple continues to focus on expanding its platform and making advancements in the cryptocurrency space.
Also read- Crypto Hacks Decline in Q1 2023, but Experts Warn of Temporary Relief
