The Legal Battle Intensifies

The high-stakes court case between the U.S. Securities and Exchange Commission (SEC) and Ripple continues to make major headlines. As the proceedings move forward, the public revelation of previously sealed evidence has added more complexity and intrigue to the case.

Recently, two unsealed memos from 2012 have become the center of debate. Ripple’s top attorney strongly criticized the SEC for its “offensive” use of these documents.

Unsealed Memos: What They Reveal

Stuart Alderoty, General Counsel of Ripple, emphasized that the 2012 memos from Perkins Coie LLP prove the company acted in good faith as it sought to launch its digital coin without clear regulatory guidance.

Alderoty argued that the SEC should have recognized these memos as evidence of Ripple’s effort to comply with the law rather than using them as a weapon against the company.

“The fact that you would have a government agency trying to take these memos and use them like a sword, or as a bludgeon, rather than applauding a company that was doing the right thing… I find that incredibly offensive,” said Alderoty.

SEC’s Counterclaim

The SEC, however, views these memos differently. According to the agency, the documents demonstrate that Ripple was aware of potential legal risks tied to the sale of XRP tokens.

The SEC filed its lawsuit in December 2020, alleging that Ripple and two of its executives conducted over $1.3 billion in unregistered securities sales through XRP.

Key Insights from the Perkins Coie Memos

The two Perkins Coie memos, dating back a decade, provide legal advice Ripple received on how XRP might be classified.

• February 2012 Memo: Warned Ripple that the sale of XRP could subject the company to regulation as securities or commodities.
• October 2012 Memo: Suggested that XRP might not be considered a security under federal law.

These conflicting perspectives now play a central role in shaping both sides’ arguments.

Is XRP a Security?

Whether XRP should be classified as a security depends on legal interpretation. The memos are seen as a critical piece of evidence in determining Ripple’s intentions and knowledge at the time.

For some observers, the memos support Ripple’s claim of acting in good faith. For others, they validate the SEC’s argument that Ripple was aware of potential legal consequences.

FAQs

Q1: Why are the 2012 memos important in the Ripple vs SEC case?
The memos provide legal advice Ripple received about the classification of XRP, shaping the foundation of both Ripple’s and the SEC’s arguments.

Q2: What does Ripple claim about the memos?
Ripple asserts that the memos prove its efforts to comply with the law and act transparently.

Q3: How does the SEC interpret these documents?
The SEC claims the memos show Ripple knowingly took risks by selling XRP despite legal warnings.

Q4: When did the SEC sue Ripple?
The SEC filed its lawsuit in December 2020, alleging that Ripple sold over $1.3 billion in unregistered securities.

Final Thoughts

The unsealing of these memos has reignited debate in the ongoing legal tug of war between Ripple and the SEC. Whether XRP will ultimately be classified as a security remains uncertain, but this evidence could play a decisive role in the court’s decision.