In a significant development for XRP holders, a prominent pro-XRP lawyer has proclaimed that their claims and concerns have finally been validated, i.e., XRP is not a security. This announcement comes as a resounding vindication for the XRP community, who have long fought for recognition and clarity surrounding the controversial cryptocurrency. With this latest confirmation, XRP enthusiasts are hoping for a brighter future.
Pro-XRP lawyer John Deaton has astutely identified a subtle footnote in a Ripple brief, which appears to provide evidence that XRP was indeed a topic of discussion among SEC staff prior to the Hinman speech.
Obscure Ripple Footnote Holds Potential Significance in Ripple vs. US Securities Regulator Conflict
According to pro-XRP lawyer John Deaton, a little-known footnote found in a Ripple opposition brief from last year may have significant implications in the ongoing conflict between Ripple and the United States securities regulator.
On May 22, Deaton took to Twitter to share his discovery, highlighting that a brief but significant footnote in a Ripple legal document provided confirmation that XRP had indeed been the subject of discussion “between SEC staff prior to the Hinman speech.
This revelation holds potential significance, as internal deliberations among SEC officials regarding the classification of XRP as a security or not could have a decisive impact on the outcome of the ongoing lawsuit between the United States Securities and Exchange Commission (SEC) and Ripple.
SEC’s Allegations and Ripple’s Denial: The Battle over XRP’s Security Classification
In December 2020, the SEC initiated legal proceedings against Ripple, alleging that the sale of its cryptocurrency, XRP, constituted an unregistered securities offering.
Ripple, in response, has vehemently claimed that the claim that XRP is not a security, contending that it does not meet the requirements outlined by the Howey Test, a commonly utilized framework for evaluating whether a transaction qualifies as a security transaction.
According to Deaton, who attributes the footnote to an external third party unrelated to the SEC, it read as follows: “There are reasonable grounds to conclude that XRP does not satisfy all elements of the Howey Analysis and is therefore not a ‘security’ for purposes of the federal securities laws.”
Pro-XRP Lawyer Highlights Compelling Evidence of XRP Discussion During Twitter Spaces Session
During a Twitter Spaces session on May 22, led by Fox Business journalist Eleanor Terrett, Deaton asserted that the evidence “clearly indicates” the discussion of XRP, as someone at the SEC either cited the mentioned individual’s statement that XRP is not a security or forwarded the email as part of the email chain.
“I’m 95% confident that the statement, reasonable grounds etc, is someone other than the SEC official…it’s still big news, it’s in these litigation emails, it proves what we all thought.”
Although Deaton acknowledged that the SEC did not provide an official on-the-record comment regarding internal discussions on XRP, he reiterated that in June 2018, XRP held the position of the third-largest cryptocurrency asset after Bitcoin (BTC), which was trading at around $27,383, and Ethereum (ETH), which was trading at approximately $1,860.
XRP’s Classification in Comparison to Bitcoin and Ethereum
Deaton pointed out that during Hinman’s Speech, it was explicitly mentioned that Bitcoin and Ethereum were not classified as securities. He further indicated that it seemed apparent that certain individuals within the SEC held the belief that XRP should be treated similarly to Bitcoin and Ethereum.
He remarked, “It was shared that market participants did not consider XRP to be a security.” Deaton continued, emphasizing that this confirmation addressed all the concerns voiced by XRP holders over the past few years, stating, “Everything that XRP holders have been passionately advocating for has undeniably been validated.”
Deaton further highlighted the significant clue that supported his interpretation, as the mentioned citation in the email was labeled as “SEC-LIT,” distinct from the other cited emails that were labeled as “SEC-PROD.” In his comments to Cointelegraph, Deaton underscored the importance of this clear distinction.
He suggested that the community should closely monitor the developments on June 13, as it is expected that the unsealing of the Hinman materials will shed light on the extent of their impact on the case.
In conclusion, the recent revelations highlighted by pro-XRP lawyer John Deaton have injected new momentum into the ongoing conflict between Ripple and the SEC. The discovery of a significant footnote in a Ripple legal document, along with the implication that XRP was discussed internally at the SEC, adds weight to the arguments made by XRP holders. As the legal battle continues, the upcoming unsealing of the Hinman materials on June 13 holds promise for further clarity. These developments bring renewed hope and validation to the XRP community, as they eagerly anticipate the potential impact on the case and the future of XRP.