The post XRP Memo Revealed: Legal Analyst Spotlights New Dimension in Ripple vs. SEC Case appeared first on Coinpedia Fintech News
In a recent tweet, legal analyst John E. Deaton delves into the ongoing Ripple vs. SEC case, shedding light on significant developments that have caught the attention of the cryptocurrency community. Among these revelations, Deaton highlights a memo or statement by SEC lead prosecutors, indicating that Ripple’s CEO, Brad Garlinghouse, and the company were aware of the SEC’s investigation by June 14, 2018.
This revelation aims to undercut Ripple’s reliance on a speech by former SEC official William Hinman. Interestingly, while the memo’s details remain undisclosed due to privilege, it has stirred controversy for reportedly not recommending any action against Ripple’s sale of XRP tokens.
The Memo’s Enigma
Deaton underscores that as of June 13, 2018, the memo likely indicates that SEC lawyers were not yet considering XRP as a security. However, if the memo now carries weight, it could potentially implicate Ripple executives in breaching securities laws. Notably, Deaton points out that an independent auditor was approved by the government in 2015 to scrutinize XRP sales every six months and provide reports.
By June 2018, authorities had amassed three years of XRP sales data. Ripple’s presentations to regulatory bodies such as CFTC, SEC, and FinCEN, along with public portrayals of XRP as a decentralized payment system, are now under scrutiny. Does Deaton imply that the SEC grew uneasy about Ripple’s positioning?
Deaton also invokes John Reed Stark, known for his critical stance on cryptocurrencies and a likely belief that Ripple violated laws. Despite this, Stark acknowledges the necessity of an inquiry, creating a thought-provoking angle. The complexities of the case leave anyone who values the SEC and justice concerned.
SEC’s Clarity in Question
Bill Morgan, a legal expert, enters the fray with criticism aimed at the SEC’s perspective on digital assets’ value, specifically XRP. Morgan argues that the SEC aims to simplify matters by asserting that digital assets lack tangible value. This strategy, he believes, facilitates the application of the Howey Test to determine investment status. However, Morgan contends that the SEC overlooks the intrinsic value digital assets can possess based on functionality and utility.
The Ripple vs. SEC battle continues to evolve, evident from the agency’s recent request for an appeal and the availability of trial dates in 2024. This indicates that the legal tussle retains its complexity.
XRP Attracts Young South Korean Investors
Amid regulatory hurdles, a positive trend emerges: XRP gains significant traction among South Korean investors in their twenties. Recent data reveals that XRP constitutes 20.7% of their investment portfolios, surpassing the combined presence of Bitcoin and Ethereum at 17.5%. This surge propels XRP to the second-largest coin in the country, signaling its popularity among young investors.
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