The dispute over whether XRP qualifies as a security has completely changed course after the Hinman Documents were made public as per a court order. Since the papers were made public, professionals in the cryptocurrency business have been carefully reading every page. According to the comments, of the new revelations disclosed, there is one key conclusion that was written clearly in the text’s tiny lines.
This result was that XRP cannot be classified as an investment contract or a security since it does not meet all the requirements of the Howey Test. In part as a result of the disclosure made public, the United States Securities and Exchange Commission (SEC) campaigned for the sealing of the extremely contentious speech and related papers.
The information revealed in the filings, which were made public following around seven court orders, reveals that SEC authorities were mostly dubious of the XRP token’s classification even when they went ahead and sued Ripple Labs and its senior executives.
According to an excerpt from the documents, the document that was originally filed with the SEC makes a clear assertion that, given the Howey Test’s failure, “there are reasonable grounds for concluding that XRP should not be considered a “investment contract” or “security” within the meaning of the Securities Act or the Exchange Act.
Game-changing discovery?
The SEC demanded that the Hinman Documents be kept secret from the public for a number of reasons, one of which being that the assertions made were those of Hinman personally, not those of the organisation. Despite the divergent perspectives shown by the insights, the findings may not have a significant impact on the lawsuit’s result beyond what has already been decided.
But the revelations made during the speech will have a significant and long-lasting impact on public opinion, which could harm the SEC’s credibility in its enforcement activities and raise the stakes for the eagerly awaited summary judgement from Judge Analisa Torres.
