An undisclosed SEC memo, spotlighted in a recent Twitter discussion, questions the agency’s initial stance on XRP’s classification, complicating Ripple’s ongoing legal battle.
Bill Morgan highlighted a memo discussing the SEC’s internal views on XRP’s security status.
John Deaton, in his response, clarified that the memo didn’t label XRP as a non-security but indicated no enforcement recommendations, suggesting the SEC didn’t initially view XRP as a security.
Impact on Ripple’s Lawsuit
Deaton pointed out that if the SEC was unsure about XRP’s status in 2018, it’s questionable to accuse Ripple leaders, Brad Garlinghouse and Chris Larsen, of previously selling XRP recklessly as an unregistered security. While the memo’s details are confidential, it challenges the SEC’s current stance against Ripple.
As the legal face-off between Ripple and the SEC unfolds, this undisclosed memo complicates the debate surrounding XRP’s classification and Ripple’s alleged misconduct.