XRP Howey Memo and Ripple-SEC Case: Key Points
- The “XRP Howey Memo” is an internal 2018 SEC document that did not definitively address XRP’s regulatory status or recommend enforcement actions against Ripple, its CEO Brad Garlinghouse, or co-founder Chris Larsen.
- In a 2018 speech, former SEC chairman Jay Clayton and William Hinman stated that Bitcoin and Ethereum were not securities, but did not mention XRP, leading to confusion about its regulatory standing.
- Attorney John Deaton revealed the existence of notes from a private meeting with Hinman’s Special Counsel, which highlighted discussions about XRP’s regulatory status, its absence from Hinman’s speech, and reminders of Ripple’s compliance efforts.
- Ripple’s CEO expressed dissatisfaction with the regulatory uncertainty compared to Ethereum’s handling, and Clayton recommended discussing Ripple’s business model with SEC staff.
- The “XRP Howey Memo” and SEC meeting notes have added complexity to Ripple’s legal battle and have implications for the broader cryptocurrency industry.
Hot Take
The revelation of the “XRP Howey Memo” and the SEC meeting notes have raised important questions about the regulatory status of XRP and Ripple’s actions. The lack of a clear stance on XRP’s classification as a security in the memo and Hinman’s speech has created confusion and uncertainty for the crypto industry. The discussions and reminders of Ripple’s compliance efforts also indicate that the SEC was aware of the company’s actions. These insights add complexity to Ripple’s legal battle and have broader implications for the future regulation of cryptocurrencies.
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