An unexpected discovery in the current legal struggle between Ripple and the United States Securities and Exchange Commission (SEC) has surfaced, which might possibly tilt the scales in favor of XRP. Pro-XRP attorney John Deaton has put light on a previously ignored footnote in a Ripple legal document, indicating that XRP was addressed by SEC personnel prior to Hinman’s speech.
Introduction
This revelation has fueled further conjecture and given XRP holders optimism that their worries and arguments have been verified. In this essay, we will look at the consequences of this disclosure and the implications it has for the future of XRP as well as the current legal actions.
Allegations Made by the SEC
To properly comprehend the implications of the current disclosure, it is necessary to examine the backdrop of the Ripple-SEC action. In December 2020, the SEC filed a lawsuit against Ripple, alleging the business of making an unregistered securities offering via the sale of its cryptocurrency, XRP. Ripple, on the other hand, has continuously rejected that XRP should be categorized as a security, claiming that it fails the Howey Test. This test determines whether or not a transaction qualifies as a security transaction.
The Importance of Footnotes
“There are reasonable grounds to conclude that XRP does not satisfy all elements of the Howey Analysis and is thus not a’security’ for purposes of the federal securities laws,” according to a newly unearthed footnote in the Ripple legal filing. According to John Deaton, this revelation, which he thinks came from a third-party source other than the SEC, is significant. It implies that internal SEC arguments over XRP’s security categorization may have occurred, possibly impacting the pending case. Although the specifics of these internal negotiations remain unknown, this news has sparked hope among XRP investors.
Consequences for the Lawsuit
This finding has important ramifications for the current legal struggle between Ripple and the SEC. If it can be shown that there were internal SEC disagreements over XRP’s categorization as a security, it might undercut the SEC’s case against Ripple. Ripple’s legal team may be able to use this evidence to refute the SEC’s charges and defend XRP’s legality as a cryptocurrency. Furthermore, it calls into doubt the SEC’s consistency, since Bitcoin and Ethereum were previously ruled not to be securities. This finding might have far-reaching repercussions for both the bitcoin business and the regulatory environment.
Conclusion
The recent discovery of a previously undetected reference in a Ripple legal document indicating that XRP was considered by SEC employees prior to the Hinman speech has given XRP investors great optimism. This finding might have a substantial influence on the current legal procedures and undercut the SEC’s case against Ripple. This discovery, according to XRP holders, confirms their long-standing arguments and worries. All eyes will be on how this new information influences the future of XRP and the regulatory environment around cryptocurrencies as the case unfolds.
Remember, this article is provided for informational purposes only and does not constitute legal advice. The outcome of the legal proceedings between Ripple and the SEC remains uncertain, and individuals should consult with legal professionals for personalized guidance. https://cointelegraph.com/news/ripple-footnote-xrp-not-security-john-deaton
