Hinman Emails: SEC Could Still Beat Ripple…Here’s Why

The United States tax code is over 30,000 pages long, and while taxes have nothing to do with the Ripple lawsuit, that level of bureaucracy and regulatory complexity does.

Recently, ex-Ripple executive, Matt Hamilton, issued an ominous warning that, despite Ripple’s best efforts, the SEC could still win. …

Hamilton explains that despite Ripple being right on the Hinman emails, this is no guarantee of a victory—due to the long and complex ‘vagaries’ of the US regulatory system.

In our hearts we all knew this, but alas that doesn’t reflect the vagaries of the US regulatory and legal system. We could still be right, but the SEC could still win the case.

— Matt Hamilton (@HammerToe) May 21, 2023

We recently reported that new evidence regarding the Hinman emails could, potentially, spell game over for the Securities and Exchange Commission in the ongoing lawsuit.

Footnotes contained within an SEC email, regarding the Hinman documents, state that there are reasonable grounds to doubt that XRP could be considered a security.

More specifically, the cryptocurrency does not satisfy all the conditions of the Howey Test:

BREAKING: Ripple / SEC email cited in lawsuit reveals an opinion by a market participant independent of Ripple that $XRP FAILED the Howey Test ⚠️

This is HUGE and a very good thing as it means $XRP was discussed as NOT being a security.

This email was NOT from an SEC official… pic.twitter.com/pu4GlaLzJy

— MASON VERSLUIS 🏆🔮 (@MasonVersluis) May 21, 2023

ZY Crypto writes:

While it’s still too early to tell what the ultimate outcome of the case will be, recent findings in court filings cast doubt on whether XRP passes the infamous Howey Test.

This means the unsealing of the Hinman emails could have a major legal impact on Ripple and its long-standing dispute with the SEC.

Attorney John Deaton remains hopeful that the SEC’s case has taken a huge hit due to the revelations made through emails regarding the Hinman docs.

There are several reasons the SEC is in this position:

1. The lawsuit was NOT only about enforcing U.S. Securities laws. If it was, the case would have been limited to specific sales made by Ripple and it would’ve settled by now. The lawsuit was used as a weapon with bad motive. https://t.co/OUmXa15yHw

— John E Deaton (@JohnEDeaton1) May 21, 2023

According to this poll, the crypto community seems optimistic on Ripple’s chances as well.

Who is going to win in the lawsuit?#SEC #Ripple

— Anton Chashchin (@antont71) April 6, 2021

U Today reports that recent legal developments and rulings should give the crypto community and XRP holders hope that Ripple will win:

The Supreme Court’s decision in the Twitter case supported this idea of adaptation by ruling that online platforms should not be held liable for user content based on existing laws.

In Ripple’s view, this supports their argument that laws and their interpretation need to evolve with changing realities, and in their specific case, that XRP should not be classified as a security under the current interpretation of the Howey Test.

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