# **Pro-Ripple Lawyer Exposes SEC’s Own Writings That Question Its XRP Stance**
The long-running battle between **Ripple Labs** and the **U.S. Securities and Exchange Commission (SEC)** has taken another dramatic turn. A pro-Ripple lawyer has recently unearthed **SEC documents and past statements** that seem to contradict the agency’s current stance on **XRP**. This discovery has intensified the debate over whether the SEC has been consistent—or even fair—in its handling of crypto regulation.
This article dives deep into the latest revelations, the implications for Ripple’s case, and what it means for the future of XRP and crypto regulation in the U.S.
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## **Background: The SEC vs. Ripple Lawsuit**
The **SEC first sued Ripple in December 2020**, alleging that the company had conducted an **unregistered securities offering** by selling XRP. The case centers around whether XRP should be classified as a **security** under U.S. law, similar to stocks and bonds, or if it should be treated as a **commodity or currency** like Bitcoin (BTC) and Ethereum (ETH).
Ripple has strongly denied the allegations, arguing that:
- **XRP functions as a digital asset, not a security.**
- **Ripple had no obligation to register XRP with the SEC.**
- **The SEC’s lawsuit is inconsistent with its past treatment of other cryptocurrencies.**
The case has been a landmark legal battle for the entire crypto industry, as it could set a precedent for how digital assets are regulated in the United States.
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## **Pro-Ripple Lawyer Uncovers SEC Contradictions**
A well-known pro-Ripple lawyer, **John Deaton**, has been one of the most vocal critics of the SEC’s handling of the XRP case. Recently, Deaton uncovered **official SEC documents and past writings** that cast doubt on the agency’s current stance on XRP.
### **Key Findings from SEC Documents**
1. **SEC’s Past Comments on XRP (2018-2019)**
- In internal emails and memos, **SEC officials acknowledged uncertainty** about whether XRP should be classified as a security.
- Some SEC officials even suggested that XRP **could be treated similarly to Bitcoin and Ethereum**, both of which the SEC has stated **are not securities**.
- Despite this, the SEC did not provide any official guidance to Ripple or the market before filing its lawsuit.
2. **Hinman’s 2018 Speech on Ethereum**
- Former SEC Director **William Hinman** stated in a 2018 speech that **Ethereum was not a security** because it had become “sufficiently decentralized.”
- The speech implied that tokens could **start as securities but later transition into non-securities** as they become more decentralized.
- If this logic applied to Ethereum, why not to XRP? Many legal experts argue that **XRP has also been widely used in decentralized transactions** without Ripple’s direct involvement.
3. **Internal SEC Discussions About Market Confusion**
- Leaked SEC emails reveal that the agency was **aware that its regulatory stance on crypto was unclear**.
- Some officials even worried that **market participants did not have enough guidance** to properly classify digital assets.
- This strengthens Ripple’s argument that **it was unfairly targeted** without clear regulatory guidelines.
### **Why These Findings Are Important**
The SEC’s own past statements **undermine** its current arguments against Ripple. If the agency itself was unsure about XRP’s status **before** filing the lawsuit, it raises serious questions about the fairness and legitimacy of its enforcement actions.
John Deaton and other pro-Ripple advocates argue that this **contradiction should weaken the SEC’s case** and potentially **lead to a settlement or even a full dismissal of charges**.
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## **Ripple’s Legal Strategy: Fighting Back Against the SEC**
Ripple’s defense team has used these revelations to further push back against the SEC. Their legal strategy revolves around several key arguments:
### **1. The SEC’s Inconsistent Treatment of Cryptocurrencies**
Ripple argues that the SEC has been **inconsistent** in its treatment of digital assets. While Bitcoin and Ethereum were granted **clarity** as non-securities, XRP was **suddenly labeled a security** after years of being publicly traded.
### **2. Lack of Due Process and Fair Notice**
Ripple’s lawyers contend that the SEC failed to provide **fair notice** before taking legal action. If the agency itself was **uncertain** about XRP’s classification, how could Ripple have known it was violating securities laws?
### **3. The "Hinman Speech" Defense**
Ripple has repeatedly pointed to **Hinman’s 2018 Ethereum speech** as evidence that the SEC recognized that **some cryptocurrencies evolve beyond being securities**. If Ethereum was allowed to transition into a non-security, why not XRP?
### **4. The SEC’s Internal Discussions Showing Doubt**
The newly uncovered internal SEC discussions demonstrate that **regulators themselves weren’t sure** about XRP’s status. This suggests that the case against Ripple may have been **politically or financially motivated** rather than purely legal.
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## **Potential Outcomes: What’s Next for Ripple and XRP?**
As the legal battle continues, there are several possible outcomes that could shape the future of Ripple and XRP.
### **1. Ripple Wins the Case**
If the judge finds that **XRP is not a security**, it would be a **major victory** for Ripple and the entire crypto industry. It would provide **regulatory clarity** and **set a precedent** for other digital assets.
### **2. Ripple Settles with the SEC**
A settlement is also a possibility, especially if the SEC feels its case is weakening. A **settlement could involve a fine** but would likely allow XRP to continue operating freely in the U.S.
### **3. The SEC Wins the Case**
If the court rules in favor of the SEC, Ripple could be forced to **pay hefty fines** and **register XRP as a security**, which could severely limit its use. This would have **widespread negative consequences** for the crypto market.
### **4. Congressional Intervention and New Crypto Laws**
With increasing pressure from lawmakers and industry leaders, Congress could step in and **establish clear crypto regulations**. This would remove **uncertainty** and prevent the SEC from making **arbitrary enforcement decisions** in the future.
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## **What This Means for the Crypto Industry**
The Ripple vs. SEC lawsuit is **more than just about XRP**—it’s about the **future of crypto regulation in the United States**. A **Ripple victory could set a precedent** for other crypto projects, preventing the SEC from taking similar actions against other digital assets.
### **Key Takeaways for the Crypto Market:**
- A Ripple victory would **strengthen arguments for crypto decentralization**.
- A **settlement could open the door for clearer regulations**.
- A ruling in favor of the SEC could lead to **more lawsuits against other crypto projects**.
Many crypto industry leaders are watching this case closely, as it could determine **how digital assets are classified and regulated** in the future.
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## **Final Thoughts: SEC’s Case Against Ripple is Crumbling**
The **newly uncovered SEC writings** add **major credibility** to Ripple’s defense, exposing inconsistencies in the agency’s arguments. If the SEC itself was uncertain about XRP’s classification before the lawsuit, how can it now claim that Ripple was knowingly violating securities laws?
With **strong legal backing, support from the crypto community, and mounting evidence against the SEC**, Ripple’s chances of winning or securing a favorable settlement **have never been higher**.
### **What do you think?**
- Should the SEC drop its case against Ripple?
- Will XRP finally get the regulatory clarity it deserves?
Drop your thoughts in the comments!
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