According to former Director of Developer Relations at Ripple Matt Hamilton, the recent discovery of internal emails from the SEC raises concerns for the case against Ripple. Hamilton remarked that the situation “looks pretty bad” for the regulator. However, he pointed out that the outcome might not align with expectations due to the intricacies of the U.S. regulatory and legal system. Hamilton emphasized that although Ripple might be in the right, there is still a possibility that the SEC could prevail in the lawsuit.
Recent findings in legal filings cast doubt on whether XRP satisfies all the criteria to be classified as a security. Allegedly, the argument posits that the cryptocurrency fails to meet all the factors outlined in the Howey Test. Nevertheless, XRP holders’ representative John Deaton speculates that the quote within the unsealed emails may not be a direct statement from an official within the SEC, but rather a reference to another individual’s analysis.
The discovery of these emails carries significant implications for Ripple and its legal dispute with the SEC. If XRP is not determined to be a security, it could have wide-ranging consequences for the entire industry. However, the lawsuit’s final outcome remains uncertain due to the intricate nature of the legal framework concerning digital currencies.
As the case unfolds, industry participants and enthusiasts of digital assets eagerly anticipate further progress. The ultimate determination regarding XRP’s classification will undoubtedly shape the future of the industry and could exert influence on the regulatory frameworks surrounding digital assets.
Financial analyst, trader and crypto enthusiast.
Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master’s program in banking and asset management.
He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.
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