New Documents Revealed Could Help Ripple’s Case Against The SECFebruary 8, 2022 5:12 pm
During the recent crypto market recovery where the majority of the top 10 blockchains rallied, XRP led the really by a far margin. at a whopping 30% in the past week.
The strong push may have been influenced by the documents that were recently ordered by Judge Torres to be unsealed and revealed to the public.
The expectation from the XRP investor community is that these documents would prove that Ripple got advice from a law firm back in 2012 with the confirmation that XRP would not be considered a security.
This is contrary to what the SEC is suing Ripple for where the SEC claims that XRP was considered a security and therefore subject to securities laws.
New XRP docs could strengthen Ripple's case against the SEC https://t.co/GoLHz7EhOk
— ANT1 (@ANT159694954) February 8, 2022
The SEC sued Ripple in 2020, arguing that XRP is not a currency but a security, and therefore subject to strict securities laws.
U.S. District Judge Analisa Torres of Manhattan has ordered that the documents must be unsealed on Feb. 17, Reuters reported.
“Once released, these documents will show that in 2012 Ripple received a legal analysis that XRP was not an investment contract,” Ripple General Counsel Stuart Alderoty said in a statement.
“The fact that it took the SEC eight years to suggest they disagreed with that analysis — while XRP traded in a massive global market — is baffling.”
The SEC could not immediately be reached for comment.
The agency had offered a different interpretation, saying the documents would show Ripple knew that XRP would be considered a security under federal law, according to the report.
It was not in Ripple or Larson’s intention initially to reveal these documents or the legal advice that the company was given back in 2012, but the recent news shows that Ripple is certainly taking advantage of this reveal anyways.
Ripple general counsel Stuart Alderoty stated that the reveal will further enforce that the legal analysis provided by the undisclosed law firm did not involve any investment contracts at all.
Interestingly enough, the SEC had also supported the reveal as it might be helpful for the SEC to its motion to strike down Ripple’s defense that they were not given fair notice.
With the @SECGov case against #ripple the SEC has opened a Pandora's box . There's no going back now . These criminals will be found out . Here's looking at you billy and Jay . Damage limitation time for the sec and @GaryGensler 🤠🤠🤠 $xrp #xrp #xrpcommmunity
— Irish red crypto🇮🇪 XRP 🧲$13 (@johnaldinioh89) February 8, 2022
The SEC’s crypto regulation, as I mentioned, could be hobbled if Ripple’s fair notice defense succeeds. Right now, because of extensive redactions in the publicly filed version of its motion to strike, it’s impossible to see why the commission believes the 2012 memos from Ripple’s lawyers undercut the company’s claim of inadequate notice.
That brief, and many of the other filings discussing the memos, will be refiled with fewer redactions next week, according to Torres’ unsealing order.
That should give everyone following this case a better idea of the significance of those 2012 memos.
Ripple’s attorneys are confident that the recent decision to favor public disclosure of the documents will help progress the status of the long-standing lawsuit and hopefully accelerate the timeline to reach a conclusion soon.
Meanwhile, XRP has recently rallied by over 30% and currently sits at a price of $0.84 and may likely cross $1 resistance level soon.
XRP is up over 30% in the past 7 days amid positive sentiment in Ripple’s case against the United States’ Securities and Exchange Commission, in which the SEC alleged that Ripple sold XRP as illegal securities. https://t.co/x7y1dhyQ6r
— Eli Fullerton (@eli_fullerton) February 8, 2022
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