Attorney Deaton shares vital evidence that could help Ripple win its case against the SEC.
As the lawsuit between the United States Securities and Exchange Commission (SEC) and Ripple approaches its end, CryptoLaw founder attorney John Deaton recently shared a vital document that could play a major role in deciding the case.
In a series of tweets over the weekend, attorney Deaton shared a page of Ripple’s opposition and reply briefs. The document’s footnote referenced SEC emails conceding that XRP does not satisfy all prongs of the Howey test and cannot be classified as a security.
“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,” the document read.
Attorney Deaton Gave Prominence to the Info
Although Ripple’s legal team disclosed the information last year in their opposition brief to the SEC’s summary judgment motion, many people, including Deaton, previously did not know about the development. It is possible the information evaded many due to where it was placed in the brief.
Attorney Deaton admitted that he overlooked the information despite tweeting about it earlier. Deaton’s reference to the document attracted the interest of crypto community members.
Commenting on the development, Fox Business journalist Eleanor Terrett described the document as “an interesting find” by attorney Deaton.
?NEW: A really interesting find by @JohnEDeaton1 in the footnotes of @Ripple’s Opposition and Reply Briefs.
It shows references to internal @SECGov emails conceding reasonable grounds that #XRP does not satisfy all elements of the Howey Test and is therefore “not a security.” https://t.co/R2zwWqjOrk
— Eleanor Terrett (@EleanorTerrett) May 21, 2023
In addition, most XRP community members were amazed at the fact that “someone” at the SEC does not think the sixth-largest cryptocurrency is a security. Responding to the comment, pro-XRP lawyer Bill Morgan thinks an SEC attorney remarked.
Most likely a SEC attorney given how many were involved and commented on Hinman’s speech expressing his personal opinion.
— bill morgan (@Belisarius2020) May 20, 2023
Most XRP enthusiasts queried why Ripple’s legal team did not give much prominence to the information at an early stage.
It remains to be seen whether Judge Analisa Torres will rely on the information when ruling on the lawsuit. However, several XRP enthusiasts believe the information would further boost Ripple’s chances against the Securities and Exchange Commission.