The US District Court for the Southern District of New York has yet to decide whether Ripple’s XRP qualifies as a security.
Meanwhile, the lawyer representing the holders of XRP in a very important case has made a big statement about the nature of the XRP token based on the statement from the SEC officials. XRP has never been a safe haven
Attorney John Deaton, amicus curiae in the XRP case, pointed to the text of Ripple’s objections in a summary of responses presented to the court.
“Read the footnotes: Exhibit 220 is part of the SEC email: XRP is called and there is a reasonable possibility that XRP does not satisfy all of Howey’s requirements,” Deaton wrote. He said:
“There are ‘reasonable grounds to conclude that XRP does not meet all of the Howey tests and is therefore not a ‘security’ for purposes of the federal securities laws”
“It is likely … that XRP will not be considered a security and therefore not subject to SEC regulatory oversight”
In addition to the case, the lawyer said that on June 13, 2018, SEC lawyers wrote a report investigating XRP. However, the committee did not approve any enforcement action, including a moratorium and a letter to stop trading tokens.
However, this raises a serious concern, why did the commission bring charges against Ripple’s leaders when its officials investigated that XRP was not safe?
In recent cases, the court denied the US Securities and Exchange Commission’s motion to suppress documents and emails related to the Hinman case. These documents will soon be available for public consultation.
Revealing the negative ratings is considered important for the crypto industry as it will help them understand why the former US SEC Chief Financial Officer William Hinman said that Ether (ETH) is not a name.