{"id":12253,"date":"2023-05-22T17:04:15","date_gmt":"2023-05-22T21:04:15","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/in-sec-emails-ripples-xrp-still-doesnt-meet-secs-security-standards\/"},"modified":"2023-05-22T17:04:16","modified_gmt":"2023-05-22T21:04:16","slug":"in-sec-emails-ripples-xrp-still-doesnt-meet-secs-security-standards","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=12253","title":{"rendered":"In SEC emails, Ripple’s XRP Still Doesn’t Meet SEC’s Security Standards"},"content":{"rendered":"
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XRP, the cryptocurrency once issued by US fintech firm Ripple, has never fully met the Security and Exchange Commission\u2019s (SEC) definition of a security, a citation from what some believe is an SEC email suggests.<\/p>\n

According to an excerpt of the email, which was released by pro-Ripple lawyer John Deaton on Twitter this weekend, the SEC might have been aware that XRP did not pass the so-called Howey test, which is used by the government to determine whether an asset should be regulated as a security or not.<\/p>\n

\u201c[There are] reasonable grounds to conclude that XRP does not satisfy all elements of the Howey<\/i> Analysis and is therefore not a \u2018security\u2019 for purposes of the federal securities laws,\u201d the email said.<\/p>\n

It also added that it in the author\u2019s view is \u201cmore likely than not\u201d that XRP is not a security, and thus will \u201cnot be subject to regulatory oversight by the SEC.\u201d<\/p>\n

The text is reportedly taken from internal communication at the SEC, but it is unclear who exactly wrote the part about XRP not satisfying the Howey test.<\/p>\n

Still, in the tweet where he shared a screenshot of the document with the email excerpt found in the footnote, Deaton called the revelation \u201cHUGE.\u201d<\/p>\n

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Commenting<\/a> under the tweet, Bill Morgan, who is another lawyer in the pro-Ripple camp, said the text referenced in the screenshot was most likely written by a SEC attorney, given how many people at the agency were involved in the case.<\/p>\n

Shortly after, however, Deaton tweeted again, saying the text might not have been written by an SEC official, given that Ripple has never used it in its defense.<\/p>\n

\u201cMaybe it\u2019s not a direct quote from an SEC official but it\u2019s an SEC official referencing someone else\u2019s analysis of XRP in the emails w\/Hinman,\u201d Deaton wrote, before adding in a separate tweet that if it was written by a senior SEC staffer it would likely have been part of Ripple\u2019s defense in court.<\/p>\n

\u201c[\u2026] it\u2019s still very helpful because if it\u2019s in the email chain about the drafts of the speech, it shows XRP being referenced at least by implication,\u201d Deaton finally wrote.<\/p>\n

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