Mystery behind the sealed memos? SEC vs Ripple lawsuit is gaining popularity and the next few moves could determine the fate of the XRP token. One such move was Judge Analisa’s ruling last week to unlock and release two memos considered key evidence in the case. The deadline to open the memos publicly is February 17, 2022.
What’s behind the sealed memos?
Here’s what both sides think about the memo-unsealing ruling:
As reported by Reuters, the SEC believes the documents show that Ripple and Christian Larsen were well aware of the risk if XRP token would be considered a security under federal law. Ripple and the government have presented completely different explanations of what Ripple’s outside counsel said in those two memos. On the other hand, Ripple and Larsen say that regulators mischaracterize the memos. They said the documents show that Ripple’s lawyers ultimately concluded that the tokens were not securities.
However, the mystery will be solved on or before February 17, as Judge Torres recently announced he would be unlocking and making two memos public.
Reportedly, Ripple and Larsen were resistant to this ruling. They even argued in letters to Torres that the memos should be kept sealed. The public release of these memos is also considered a critical test of the SEC’s ability to regulate cryptocurrency offerings.
Crypto vs XRP; Are rules different for Ripple?
Ripple CEO Brad Garlinghouse had already claimed that Ethereum was given the green light allowing it to surpass the XRP token. The SEC has been pursuing Ripple over claims that XRP is an investment contract and thus a security under the Howey test.
John E Deaton, the attorney for the XRP holders in the case, took to Twitter to comment on SEC’s claims against XRP. In his opinion, while other private entities are using XRP token to facilitate crypto transactions, why is only Ripple being targeted?
👇 is the best example I’ve come across to demonstrate the absurdity of the SEC’s claims against #XRP† @Spend_The_Bits can 100 . to move #BTC for a price of .00005 #XRP† According to the SEC, the #BTC is not a security but the .00005 #XRP used to move the #BTC is a security. 🤦 https://t.co/u2boacoMGC
— John E Deathon (@JohnEDeaton1) February 8, 2022
He believes that the SEC’s investigation is biased and that the rules are not the same for Ripple and crypto. Do you agree with John’s opinion?
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About the author
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously, he was a co-founder of Govt. of India supported startup InThinks and is currently editor-in-chief at Coingape and CEO at SquadX, a fintech startup. He has published over 100 articles on cryptocurrency and blockchain and has assisted a number of ICOs in their success. He co-designed an industry training for blockchain development and has conducted many interviews in the past. Follow him on Twitter @shamasunil8114 and contact him at sunil (at) coingape.com
This post Why February 17th Is Crucial In Ripple Vs SEC Case?
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