The latest SEC finding of internal emails raises questions for the lawsuit against Ripple, according to Matt Hamilton, a former director of developer relations at Ripple. The scenario “looks pretty bad” for the regulator, Hamilton said. The complexity of the U.S. regulatory and judicial structure, he noted, may prevent the conclusion from being as anticipated. Hamilton emphasised that even if Ripple may be in the right, the SEC may still be able to win the litigation.
Recent revelations in court documents raise questions about whether XRP fully meets the requirements to be categorised as a security. According to the argument, the cryptocurrency doesn’t satisfy all of the criteria listed in the Howey Test. John Deaton, a spokesman for XRP investors, hypothesises that the phrase in the disclosed emails may not be a direct declaration from an SEC employee but rather a reference to another person’s research.
These emails’ revelation has important repercussions for Ripple and its legal battle with the SEC. The cryptocurrency market as a whole may suffer if XRP is not deemed to be a security. Due to the complex nature of the legal system governing digital currencies, the lawsuit’s fate is still up in the air.
Participants in the sector and fans of digital assets anxiously await new developments as the case develops. The final ruling on XRP’s categorization will definitely influence the direction of the sector and may have an impact on the legal frameworks governing digital assets.
