A memo from 2018 has recently emerged, sparking a new wave of conversation and speculation regarding the Securities and Exchange Commission’s (SEC) stance on Ripple’s XRP token. Attorney John Deaton has provided insight into why SEC enforcement lawyers have been reluctant to provide clarity on Ripple’s position in the market.
The ongoing legal battle between Ripple and the SEC has been a topic of discussion among lawyers and Ripple supporters. This latest development adds a new layer to the case. According to the newly obtained memo, the SEC’s previous position on the XRP token and its classification in the market appears to differ from its current position.
Renowned lawyer Bill Morgan brought attention to the SEC’s stance on XRP in a recent post on a social media platform. Attorney John Deaton further expanded on the topic, shedding light on the SEC’s past position on the status of XRP.
Deaton explains that some individuals have misinterpreted the memo, suggesting that it revealed XRP was not considered a security. However, this is not the case at all. Although the memo is considered “privileged,” it does not explicitly state whether XRP is or isn’t a security. Deaton clarifies this in his response to the misinterpretation.
The attorney emphasizes that he did not claim that the memo concluded XRP is not a security. Furthermore, since the memo was deemed privileged and undisclosed, Deaton has not had the opportunity to read its exact contents. However, Judge Netburn noted the importance of the memo, highlighting that the authors, who were enforcement lawyers at the SEC, did not recommend any action to be taken.
Deaton goes on to explain that as of June 13, 2018, the memo did not provide any definitive conclusions about the classification of XRP in the cryptocurrency market. If a classification had been made, it would have been followed by a recommendation for enforcement or some form of action.
The attorney remains critical of SEC enforcement lawyers, suggesting that it is unlikely they will conclude that XRP is a security. Instead, he believes they will continue to allow Ripple to operate in violation of the law.
Deaton makes a strong case for Ripple executives, stating that the SEC cannot charge them for facilitating the sale of XRP as a security when the SEC itself could not reach a conclusion on XRP’s status in the market back in 2018.
He argues, “As Gensler says, the SEC is an enforcement agency. Most likely, the memo was inconclusive. The major point here is that if enforcement lawyers at the SEC struggled to conclude XRP was a security in 2018, how can it be that Brad Garlinghouse and Chris Larsens were reckless in not knowing XRP was being sold as a security in 2013-2015 and on.”
Deaton’s recent remarks come shortly after the SEC stated, in a motion to Supreme Court Judge Analisa Torres, that the XRP token has no intrinsic value. This statement has sparked heated discussions within the crypto community.
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In conclusion, the emergence of the 2018 memo has opened up a new avenue of discussion regarding Ripple’s legal battle with the SEC. Although the memo does not explicitly state whether XRP is a security or not, it sheds light on the SEC’s previous position and provides insight into the ongoing legal dispute. Attorney John Deaton’s analysis further highlights the complexity of the case and raises questions about the SEC’s enforcement actions. The outcome of this legal battle will have significant implications for Ripple and the broader cryptocurrency market.