Ripple and the US Securities and Exchange Commission (SEC) have been engaged in a lawsuit for quite some time. Both sides are taking appropriate measures to justify themselves.
Winning the lawsuit for the SEC means that it can very well regulate the circulation of Cryptocurrencies in the market. On the other hand, grabbing the victory for Ripple means to prove that its lawyers had concluded that XRP was not an investment contract.
Ripple’s 2012 Memos To Be Made Public?
The US Securities and Exchange Commission has accused Ripple of ignoring the warning of its lawyers that XRP could trigger regulations by the government authorities. Ripple has justified itself by saying that the memos exchanged at that time had a clear go-ahead signed by its lawyers.
This does not seem to have any effect on the trading value of XRP as of now. The price stands at $0.909, an increase of 40.87% in the past seven days. The trading value is estimated to rise further and touch the over-optimistic mark of $3.84 by the end of the current year. Find more here about the future of XRP and its impact on the crypto industry.
Community and investors are supporting XRP because of the confidence that Ripple and its executives have shown despite the instruction of making the memos public.
Ripple had sought advice from its lawyers before concluding the offering worth $1.3 billion between 2013 and 2020. Lawyers had responded to it through a memo mentioning the analysis of the legal issues.
Now, Ripple and the SEC have different opinions about the memos.
While the SEC is saying that Ripple and Christian Larsen, then Chief Executive Officer, were entirely aware of the matter, Ripple and Christian Larsen are arguing that the memos are being mischaracterized by the regulator.
No matter which side is speaking the truth, memos have surely become key evidence to the case, with many believing that the lawsuit will test the ability of the SEC to regulate Cryptocurrencies in the country. Get detailed information about cryptocurrency news here.
Everyone with their eyes glued to the lawsuit has found a concrete statement that they were looking for.
Analisa Torres, the US District Judge of Manhattan, ruled last week that Ripple must make the memos public by February 17, 2022.
The ruling requiring Ripple to unseal the memos was earlier not handled positively by Ripple and Christian Larsen. Both had argued that memos were critical to the company as they contained strategies, analysis, and other proprietary concerns.
They further argued that the memos were not material to the case. The same has been reflected by Martin Flumenbaum, Christian Larsen’s counsel. He said that it was not good to make the memos public as they contained competitively sensitive information.
However, Ripple has now decided to make the best use of this opportunity and make the memos public. Since they already highlighted the conclusion stating that XRP was not an investment contract, they would assist the company in winning the lawsuit.
The SEC, meanwhile, is awaiting to prove that it never mischaracterized the memos.
