Ripple CEO says legal memos prove XRP not a ‘security’; how accurate is it
In 2012, Ripple reached out to a legal company to get a review of its business model and obtain recommendations for reducing legal risks. After the company’s first analysis, Ripple went back to the drawing board and submitted a new proposal.
Now, ten years later, the legal memos have been unsealed as part of the SEC vs Ripple lawsuit, and emotions are running high.
Ripple CEO Brad Garlinghouse, said,
But the question stands – what exactly did the law firm say? Perkins Coie, which even the SEC called “reputable,” stated,
“Although we believe that a compelling argument can be made that Ripple Credits do not constitute “securities” under the federal securities laws, given the lack of applicable case law, we believe that there is some risk, albeit small, that the Securities and Exchange Commission (“SEC”) disagrees with our analysis.”
Investors should note this is a long way from confirming that Ripple Credits – which we know as XRP – was not a security. In fact, this is where the problem lies. While Ripple execs defend XRP, the SEC has claimed that Ripple ignored several recommendations by the legal firm ‘in order to raise hundreds of millions of dollars to fund its operations.’
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