The legal battle between Ripple and the SEC remains fierce, constantly bringing new dimensions. Veteran crypto attorney John Deaton has lifted the lid on a potentially pivotal secret XRP memo in influencing the outcome of the ongoing lawsuit.
In short
- Crypto lawyer John Deaton reveals a secret memo from 2018 related to XRP.
- Many crypto observers believe that this document could play a decisive role in the course of the current lawsuit
The secret memo that shakes up the Ripple lawsuit
The legal battle between Ripple and the SEC reaches a key moment, marked by an unexpected development. While the start date of the trial was initially set for August 23, with an initial estimate between April and June 2024, this timetable has undergone a slight shift. Curiously, this postponement seems to tilt in favor of Ripple.
At the heart of this situation, attorney John Deaton, who represents XRP holders, shed light on a secret memo linked to XRP. Considered by many observers as a key element, this document could play a decisive role in the progress of the ongoing trial.
The memo focuses on questions posed in June 2018 by Brad Garlinghouse, CEO of Ripple Labs, and David Schwartz, CTO, to William Hinman and Jay Clayton of the SEC.
The questions raised in this secret memo by Garlinghouse and Schwartz relate to the clarity surrounding the status of XRP three months after Hinman’s momentous speech. During this speech, Hinman had excluded Bitcoin and Ethereum from the securities category, leaving out XRP, a crypto that at the time closely rivaled Ethereum in terms of market capitalization.
Decrypting the SEC’s perception of XRP: Clarity revealed!
L’exam Deep dive into the secret memo reveals that Garlinghouse and Schwartz had raised questions at the time about the lack of mention of XRP in Hinman’s speech. This omission had raised doubts about the SEC’s perception of XRP as a security or not.
The newly leaked documents authenticated the meeting as well as the SEC memo, adding credibility to John Deaton’s revelations. The lawyer pointed out that the annotations of William Hinman’s lawyer, also present at this meeting, could provide crucial clues.
The omission of XRP as a non-security in Hinman’s speech has spawned various speculations. Experts argue that the commission does not recognize any intrinsic value associated with this digital currency. This omission reflects differing interpretations of the Howey test, which remains at the heart of the controversy.
As more than two and a half years have passed since the start of the XRP trial, the hour of conclusion finally seems to be dawning on the horizon. However, the recent ruling by Judge Analisa Torres, ruling that programmatic sales of XRP are not securities under the Howey test, is currently being challenged by the SEC. The latter was granted leave to file an interlocutory appeal. Regardless of the outcome of the lawsuit, optimism regarding an eventual victory for Ripple continues to grow.
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