Although blockchain technology and digital currency are extremely popular right now, the financial technology sector has seen better times due to ongoing legal and regulatory conflicts. In this Mount Equity Group Review, we'll discuss the case possibilities for Ripple XRP and the consequences after 2022.
So far, XRP versus SEC
With the use of Deliberative Process Privilege (DPP) in the Ripple
v. Securities and Exchange Commission (SEC) case, the US government has launched numerous attacks against the
cryptocurrency industry in recent years. Despite three fixes, the problem has persisted for more than a year, upsetting the Fintech community.
Judge Netburn instructed the SEC to turn over other internal XRP, Ethereum, and Bitcoin documents as further proof for greater context.
On May 6, 2021, the SEC submitted a further motion requesting clarification and a review of the standards. A second XRP motion was filed on August 10 with the SEC insisting on DPP after the judge ordered the release of specific internal SEC records.
Regarding the dispute with federal regulators over the security and registration of the digital asset XRP, they held another hearing on August 31, although the decision making process lasted until January 13, 2022.
XRP Legal Memos from 2012.
According to Mount Equity Group Review, on February 18, 2022, recent court papers disclosed two legal memoranda from Perkins Coie LLP to Ripple about XRP tokens, dated February 2012, warning Ripple to avoid selling proposed currencies because to
potential security and commodity difficulties. XRP might not technically be regarded as a security asset under current federal rules, but there was a chance that the SEC would disagree, according to another memo from the same company that was sent to Ripple in October 2012. Ripple carried on with its business despite the early legal counsel and notification.
Perkins Coie LLP ended up being right about their insight. Eight years after that warning, the SEC sued the company along with Chief Executive Officer (CEO) Bradly Garlinghouse and cofounder Christian Larsen alleging that the two men sold the virtual tokens profiting around $600 million, disregarding the prior legal advice that XRP may be considered an investment contract or security asset.
While the case is still ongoing, pending further investigation from the multiple parties involved, Mount Equity Group Review finds thattheresultsandrulingsofthe XRPvs.SEClawsuitcouldimpact the entire Financial Technology sector and its various currencies. It could start a series of anti-crypto cases or modified security asset definitions to apply to other tokens moving forward.