John Deaton, a pro-XRP lawyer that has followed the SEC vs. Ripple case since its filing in 2020, says new email details suggest staff at the US Securities and Exchange Commission (SEC) seem to have indicated there are “reasonable grounds” to believe XRP is not a security.
The emails are highlighted as part of the footnote in Ripple’s arguments against the SEC allegations. One of these is “exhibit 220.” Deaton said:
“Exhibit 220 is part SEC emails: XRP is mentioned and that there are reasonable grounds XRP doesn’t satisfy ALL Howey factors. HUGE.”
There’s also a citation of “SEC-LIT-EMAILS” which the lawyer points out relates to the Hinman emails.
“Since noticing this, I’ve been racking my brain about two things: 1) why wouldn’t Ripple lawyers make a much bigger deal about this (and not just include it in a footnote); and 2) how tf did I miss it before today (although to be fair I’ve read thousands of pages and do have a job)?” he tweeted.
As to why Ripple didn’t go hard on the SEC in light of these suggestions, he says it’s likely the fact that the information is not a direct quote from an SEC official. He argues that the emails might have been reference to an analysis of XRP and not an absolute statement of XRP not being a security.
SEC emails are “huge”, it could be game over if it goes to jury
Anticipation of a favourable ruling for Ripple continues to build across the crypto community and Deaton says the emails could be a game-changer in favour of the company if this goes to a jury. Some experts have opined that the SEC could choose to settle.
The lawsuit between Ripple and the SEC began in December 2020, when the SEC filed a complaint alleging that Ripple had violated federal securities laws by selling XRP as an unregistered security.
Ripple has denied the allegations and has accused the SEC of overreach.