Ripple vs SEC: Behind-the-scenes revelations from a secret memo could shift the tide!

The legal battle between Ripple and the SEC remains fierce, constantly bringing new dimensions. Veteran crypto lawyer John Deaton has lifted the veil on a secret XRP memo, potentially decisive in influencing the outcome of the ongoing trial.

In brief

Crypto lawyer John Deaton reveals a secret memo from 2018 related to XRP.

Many crypto observers believe this document could play a decisive role in the course of the current trial

The secret memo that’s shaking up the Ripple trial

The legal battle between Ripple and the SEC is reaching a key moment, marked by an unexpected development. While the trial’s start date 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 be in Ripple’s favor.

At the heart of this situation, lawyer John Deaton, who represents XRP holders, has brought to light a secret memo linked to XRP. Considered by many observers to be a key element, this document could play a decisive role in the unfolding of the current 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 concern the clarity surrounding XRP’s status three months after Hinman’s memorable speech. During that speech, Hinman had excluded Bitcoin and Ethereum from the securities category, leaving XRP out, a crypto that at the time closely rivaled Ethereum in terms of capitalization.

Deciphering the SEC’s perception of XRP: Clarity unveiled!

A closer look at the secret memo reveals that Garlinghouse and Schwartz expressed questions at the time about the absence of any mention of XRP in Hinman’s speech. This omission had raised doubts as to whether the SEC perceived XRP as a security or not.

Recently disclosed documents have authenticated both the meeting and 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 the meeting, could provide crucial clues.

The omission of XRP as a non-security in Hinman’s speech has given rise to 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.

Now that more than two and a half years have passed since the XRP trial began, the time for a conclusion finally seems to be dawning on the horizon. However, Judge Analisa Torres’ recent ruling that XRP’s programmatic sales are not securities under the Howey test is currently being challenged by the SEC. The SEC has been granted leave to file an interlocutory appeal. Whatever the outcome of the trial, optimism about a possible victory for Ripple continues to gain strength.