XRPThe cryptocurrency, once released by US fintech firm Ripple, has never fully met the Security and Exchange Commission’s (SEC) definition of a security, some believe an SEC email suggests.
The SEC may find that XRP has not passed the so-called Howe test, which is used by the government to determine whether it is a cryptocurrency, according to an excerpt from an email released by pro-Ripple attorney John Deighton on Twitter this weekend. Whether an asset should be regulated as a security or not.
,[There are] There are reasonable grounds to conclude that XRP does not satisfy all of its elements be analysis and is therefore not a ‘security’ for purposes of the federal securities laws,” the email said.
It also said that it is “more than likely” in the author’s view that XRP is not a security, and thus “will not be subject to regulatory oversight by the SEC.”
The text is purportedly taken from an internal communication at the SEC, but it is unclear who exactly wrote about XRP not satisfying the Howey test.
Still, in a tweet where he shared a screenshot of the document with the email excerpt found in the footnote, Deaton called the revelation “enormous.”
while commenting Under the tweet, Bill Morgan, another lawyer in the pro-Ripple camp, said that the text referenced in the screenshot was most likely written by an SEC attorney, given how many people at the agency were involved in the case.
However, shortly after, Deaton tweeted again, adding that the text may not have been written by an SEC official, noting that Ripple has never used it in its defense.
Deaton wrote in a separate tweet before adding, “This may not be a direct quote from an SEC official, but this is an SEC official referencing someone else’s analysis of XRP in an email w/ Hinman.” Is.” This is likely to be part of Ripple’s defense in court.
,[…] It’s still very helpful because if it’s in the email chain regarding the draft speech, it shows XRP is being referred to, at least by implication,” Deaton concluded.