Internal emails from the U.S. SEC show that the regulator knew that XRP did not fully meet the definition of a security.

The emails, which were first reported by Crypto Briefing, argue that there are reasonable grounds not to consider XRP as a security because it does not satisfy the Howey test.

The Howey test is a legal framework used to determine whether an investment is a security. The SEC’s emails argue that XRP does not meet the Howey test because it is not an investment of money. The emails state that XRP is a “cryptocurrency” that is “purchased and held for its utility, not as an investment.”

The SEC’s emails could be a major blow to its case against Ripple. The SEC is suing Ripple for allegedly selling XRP as an unregistered security. If the SEC’s emails are accepted as evidence, it could help Ripple to win its case.

Ripple has been making significant strides in recent months. The company recently acquired Swiss custody firm Metaco and announced that its CBDC Platform can interact with the XRP Ledger (XRPL) and XRP token.

Ripple’s continued growth and innovation could help to further legitimize XRP and the broader cryptocurrency industry.