Who went to the yesterday ripple (XRP) chart looked saw a sudden increase of no less than 10% in the early afternoon. The rise came amid a market-wide correction that once again caused prices to fall deeper. Where did this striking increase in XRP suddenly come from? The cause seems to lie with two new documents!
New development XRP lawsuit
Two new documents have been released in the lawsuit between Ripple, its founders and the Securities and Exchange Commission (SEC). from that documents turns out that Ripple has done its best to ensure that XRP is not an effect. Investors yesterday saw this as a possible positive development for Ripple’s position in the lawsuit.
Both documents are from Perkins Coie, an international law firm. As early as 2021, Ripple sounded the alarm here to investigate its plan to create a cryptocurrency to launch. Back then, in February 2012, Perkins Coie came to the conclusion that the shape of the cryptocurrency could indeed be seen as an effect at that time.
Ripple adapted
In response, Ripple set to work modifying its plan. Later it rang the bell again with Perkins Coie for a re-evaluation. In October 2012, the law firm released a new memo. And it was a lot more positive, says Jamer Filan, a lawyer who is monitoring the case:
“October’s Memo [2012] was more positive and while it said there was a “small” risk that the SEC would disagree, Perkins Coie concluded that Ripple Credits [de vroege versie van XRP] should not be regarded as securities. The memo also suggested steps Ripple could take to minimize the risk of the SEC.”
3/5 The October memo was more positive and while it said that there was a “small” risk that the SEC could disagree, Perkins Coie concluded that Ripple Credits should not be considered securities. The memo also suggested steps Ripple could take to minimize the risk that the SEC
– James K. Filan 🇺🇸🇮🇪 (@FilanLaw) February 18, 2022
Why it can work out positively for Ripple
They are two memos that could positively influence Ripple’s business. It shows that the company has not just launched and sold a cryptocurrency. Ripple conducted research prior to the launch, demonstrating its willingness to comply with applicable laws and regulations. In response to the new documents tweeted Ripple CEO, Brad Garlinghouse:
“What we are seeing is that the SEC waited 8 years to decide they disagreed with this analysis, decimating thousands upon thousands of XRP holders (which they claim to protect) in the process.”
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