Bill Morgan recently brought attention to an unrevealed SEC memo on Twitter, which has added layers of ambiguity to Ripple’s ongoing legal tussle, particularly concerning the classification of XRP.
John Deaton responded to the discussion, noting that while the memo didn’t explicitly categorize XRP as a non-security, it also didn’t advocate any enforcement actions. This suggests that the SEC may not have initially perceived XRP as a security.
To be clear, I didn’t say the memo concluded XRP is not a security. The memo was found to be privileged and not disclosed so I haven’t read exactly what it says. But Judge Netburn found it important to note that the authors of the memo, who were Enforcement lawyers at the SEC,…
— John E Deaton (@JohnEDeaton1) August 27, 2023
Consequences for Ripple’s Legal Case
Deaton further argued that if the SEC had reservations about XRP’s classification in 2018, its current accusations against Ripple’s leaders, Brad Garlinghouse and Chris Larsen, for allegedly selling XRP as an unregistered security might be on shaky ground. The exact contents of the memo remain undisclosed, but it casts doubt on the SEC’s present position against Ripple.
As the legal showdown between the SEC and Ripple continues, this memo stirs further discussions on XRP’s status and Ripple’s purported wrongdoings.
