Former Ripple Director Says Recent Discovery in Lawsuit Looks “Pretty Bad for SEC”

Hamilton said the newly discovered SEC emails might hurt the commission’s case against Ripple.

Matt Hamilton, former Director of Developer Relations at Ripple, has taken to Twitter to react to the latest discovery of an internal SEC email. Notably, the document suggests that XRP does not satisfy all prongs of the Howey test.

In a recent tweet, Hamilton noted that the latest discovery looks “pretty bad” for the United States Securities and Exchange Commission. Hamilton made this known in response to a question about his take.

Looks pretty bad for the SEC’s case.

— Matt Hamilton (@HammerToe) May 21, 2023

Hamilton Says SEC Might Win

According to Hamilton, while most XRP community members know that the recent finding does not bode well for the SEC, the commission could win the lawsuit against Ripple.

“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,” said Hamilton.

Recall that, as reported by Crypto Basic, attorney John Deaton shared a document referencing an internal SEC email that expressed doubts about whether XRP satisfies all prongs of the Howey test. For clarity, the Howey test is a legal step determining whether a transaction constitutes an investment contract in the US.

Amid the heightened optimism triggered by the latest development, Deaton, the attorney who unearthed the information, said the remark might not be from an employee of the Securities and Exchange Commission.

He asserted that the statement could be a reference to an individual analysis carried out specifically for the XRP coin. Nevertheless, Deaton eagerly anticipates unsealing the emails labeled as Exhibit 220. It is worth noting that the SEC emails, alongside other summary judgment materials, will be released on June 13, 2023.

No Date for Summary Judgment

While the court is clear on the deadline for releasing summary judgment materials, no one knows when Judge Analisa Torres will issue a final verdict in the case.

As reported earlier, Ripple speculated that the ruling would come before the end of the year. It remains to be seen whether Judge Torres will issue the summary judgment before the year ends.