Will The SEC Now Accept XRP Not Being A Security? Or Is SEC Brewing Another Strike?

Time Stamp: February 19, 2022 3:17 AM
Source Node: 1179640

Ripple vs SEC

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The cryptoverse is all heated up with a buzz around the business’s prolonged lawsuit. Which is that of Ripple’s brawl against the U.S SEC. The proceeding year has been imperative for Ripple and the XRP army. As the legal hurdle seems to be moving in favor of the defendants. The recent ruling has been a major event in the lawsuit, as it has immensely reinforced the stance of the defendants.

The stout evidence that the XRP army has been seeking, for now, seems to be publicly available. As Judge Analisa Torres directs the unseal of memorandums revolving around Ripple’s lawsuit. The two legal memos which the community has been referring to are finally available and has fortified the unity of the XRP army.

Also Read : Ripple vs SEC : Will Elon Musk Join Ripple(XRP) Supporters in Their Fight Against the SEC?

Will This Bring An End To The SEC’s Unruly Conduct?

 The arduous legal battle between Ripple Labs and the U.S SEC now finds a bleak of the end. This comes following the directive by Judge Analisa Torres of unsealing a couple of memorandums. The court order has reviewed defendants Ripple Labs and Chris Larsen’s letter and proposed redactions to Exhibit E. 

Accordingly, the clerk is directed to unseal a number of documents, that include. The memorandum in support of Chris Larsen’s motion to dismiss the first amended complaint. SEC’s memorandum of law in support of its motion to strike the Fair Notice Affirmative Defense. Ripple’s memo of law in opposition to the SEC’s motion to strike the Fair Notice Defense.

Successively other unsealed memos include SEC’s memo of law in opposition to Larsen’s and Garlinghouse’s motion. Chris Larsen’s reply memo of law in further support of his motion to dismiss the first amended complaint. And the two legal memos from October of 2012, that have encompassed the business in talks.

Defense Lawyer James K. Filan who has been proactive in updates around Ripple’s tussle with the SEC. Cites that, memos, in general, are in favor of the defendants and the community. The first memo from Perkins Coie was composed in February 2012 and sent to Jed McCaleb and Jesse Powell. While the second memo was from the October of 2012.

The first memo cites that if a new coin is sold which now looks like an ICO would result in the asset being considered a security. However, Ripple had revised its plans going back to Perkins Coie, who issued the second memo in October of 2012. The 2nd memorandum was sent to Chris Larsen and Jed McCaleb. Which also included the steps to minimize risks prevailing from the SEC.

The advocate cites that, the 2nd memo was more positive. While it did alert of a small risk which the SEC could fail to agree. The document reads that the primary reason for purchasing Ripple credits is to facilitate online commerce. And not to engage in speculative investment trading, further citing that the commercial traits of “Ripple credits should not be considered securities”.

Concluding, The masses from the community have been joyous over the statement, and are praising the Ripple team for its proactiveness.  Most importantly, it was 5 years before the SEC brought up talks around digital assets. The SEC taking eight years to disagree the analysis continues to irk the community, which is now a thorn in the SEC’s feet. 

While the defendants now have stout evidence backing them being proactive in seeking legal guidance. The plaintiffs would be adamant on the “small risk” as aforementioned. That said, the unseal of memos is one of the major propelling events in the lawsuit. Which will eventually take the case towards the terminal. Bringing in relief for XRP from i ts recurring torments.

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