Matt Hamilton, a former director of developer relations at Ripple, commented on the most recent evidence in the continuing legal battle between the company and the Securities and Exchange Commission (SEC). Hamilton voiced his thoughts on the recently exposed internal SEC email on Twitter.
Hamilton tweeted that hile most XRP community members view the newest revelation as negative news for the SEC, the agency still has a chance of succeeding in its action against Ripple. The discovery “looks pretty bad” for the SEC, he added.
The relevant internal correspondence was made public by Ripple’s legal counsel and demonstrated that the SEC was aware of the potential market repercussions of their legal action against Ripple. In an email, which was made public to journalists, a SEC representative says that the agency should be aware of the possibility that the litigation will lower the value of XRP.
Many members of the XRP community have criticized the SEC’s handling of the case in light of this information, casting doubt on the agency’s motivations. While some have accused the SEC of trying to manipulate the market by going after Ripple, others have demanded more openness and responsibility from the organization.
Whether XRP is a security is at the heart of the dispute between Ripple and the SEC. The SEC claims that Ripple sold unregistered securities, while Ripple counters that XRP is a currency and is therefore exempt from SEC control.
Hamilton Shares His Opinion, Warns SEC
According to Hamilton, the verdict in the lawsuit could have a big impact on the entire cryptocurrency market. If the SEC wins its case against Ripple, it may serve as a model for future regulation of other cryptocurrencies. The regulatory environment for cryptocurrencies may become clearer if Ripple is successful, which would give investors and businesses operating in the sector more assurance.
Since it began in December 2020, the case has resulted in many changes to the cryptocurrency market. In reaction to the lawsuit, some exchanges delisted XRP, while others kept the coin on their lists. The case has also prompted a larger discussion about the function of regulation in the cryptocurrency sector and the possible effects of government interference on growth and innovation.
Meanwhile, concerns have been expressed regarding the SEC’s handling of the matter following the recent disclosure of an internal SEC communication in the continuing legal dispute between Ripple and the SEC. Hamilton still believes that the SEC may succeed in the litigation even if he thought the discovery looked awful for the organization. The cryptocurrency industry is carefully watching the case’s conclusion since it might significantly impact how cryptocurrencies are regulated in the future.