The court presiding over the Ripple vs. SEC lawsuit unseals documents from 2012. The SEC alleges that these memos contain proof that Ripple knew that XRP was a security before selling the digital token. Ripple argues otherwise.
Two legal memos Ripple Labs Inc. had in their possession ten years ago about the status of its crypto token are the new target for the federal regulators in its legal battle against the company. The SEC says that this will provide conclusive proof regarding their claim that Ripple sold the token despite knowing that it was a security.
The court documents were unsealed on Friday, February 17, 2022, and they show that in a memo from February 2012, Perkins Coie LLP attorneys advised Ripple not to sell their proposed cryptocurrency as various conditions could subject them to being regulated as either securities or commodities. The second memo sent to the firm, dated October 2012, suggested that XRP may not be considered as a security under federal law. This memo also cautioned the company that there is a huge risk that the SEC might see things differently despite this memo.
Several analysts view this case as an important precedent for the wider crypto space. The conclusion of this case will define SEC’s regulatory authority over cryptocurrencies and digital assets. Bloomberg Intelligence Senior Litigation Analyst, Elliot Stein, said that he thinks the agency will win in a recent statement. This ruling could impact other coins when this happens.
Ripple General Counsel Stu Alderoty is pleased that the 2012 memos were made public. He says that the documents show a ‘compelling’ legal analysis that XRP is not a security. He also adds that the fact the SEC took eight years before they showed their disagreement with the analysis is baffling.
The case is still awaiting a final decision, and the wider crypto community is all eyes on the case. Meanwhile, XRP’s price rose by 2.34% in the last 24 hours since the memo’s release.