Pro-XRP Lawyer Confirms the Shouting of the XRP Holders

Pro-XRP Lawyer Confirms the Shouting of the XRP Holders

  • XRP advocate claim that a brief footnote in a Ripple Legal document.
  • XRP advocate claims on the footnote in a Ripple legal brief.
  • The discovery may undermine the SEC’s case against Ripple.

An unexpected development in the ongoing legal battle between Ripple and the Securities and Exchange Commission of the United States (SEC) has come to light and may tip the scales in XRP’s favor. 

A new discovery of the XRP discussion

On May 22, an advocate for XRP named John Deaton posted on Twitter to claim that a brief footnote in a Ripple legal document, which he had only recently discovered, proved that XRP had in fact been discussed “between SEC staff prior to the Hinman speech.”

This might be important because internal discussions among SEC personnel over whether XRP is a security or not can create a difference in the outcome of the ongoing legal dispute between the SEC and Ripple.

Allegations on Ripple by the SEC

This information has sparked more rumors and given XRP holders hope that their concerns and claims have been validated.

Examining the context of the Ripple-SEC action is crucial in order to fully understand the consequences of the recent revelation. The SEC filed a complaint against Ripple in December 2020, stating that the company offered unregistered securities through the sale of its cryptocurrency, XRP. 

On the other side, Ripple has consistently argued that XRP does not pass the Howey Test and therefore cannot be classified as a security. This test establishes if a transaction meets the criteria to be classified as a security transaction.

The Footnote Deaton Found

According to the recently discovered footnote in the Ripple court brief, “There are adequate reasons to conclude that XRP fails to meet all elements of the Howey Analysis and therefore is not a “security” for purposes of the federal securities laws.” John Deaton believes that this information, which he believes was obtained from a source other than the SEC, is noteworthy.

It suggests that internal SEC disputes regarding the classification of XRP as a security may have taken place, potentially having an influence on the ongoing lawsuit. Although the contents of these internal discussions are yet undisclosed, this revelation has given XRP investors cause for optimism.

The Consequences of Discovery

This discovery has significant legal repercussions for the ongoing dispute between Ripple and the SEC. The SEC’s case against Ripple can be undermined, if it  establishes that there were internal differences within the SEC over the classification of XRP as a security. This proof may be used by Ripple’s legal team to dispute the SEC’s allegations and defend the legitimacy of XRP as a coin.

Deaton reiterated that in June 2018, XRP was the third-largest cryptocurrency behind Bitcoin and Ethereum. He also emphasized that the SEC “made no comment on the record” on whether XRP was ever addressed internally.

According to Deaton, it “appears that many at the SEC may have considered XRP ought to be handled similarly to Bitcoin and Ethereum,” which was expressed in Hinman’s speech.

Deaton noted that the email’s citation, “SEC-LIT,” stood out in contrast to the other emails mentioned, which were attributed as “SEC-PROD.”

He went on to say that although the SEC had objected to their release, these documents were “the Hinman emails and speech drafts” and that they were still necessary for the litigation.

This discovery might significantly impact ongoing legal proceedings and will dent the SEC’s case against Ripple. Holders of XRP claim that this revelation supports their long-standing claims and concerns.

Deaton advised the community to pay close attention on June 13, when we will see how much this will affect the lawsuit. It can perhaps have an impact on the future of ripple and the regulatory landscape around cryptocurrencies too.