XRP does not constitute security. The two legal memos have now been unsealed.
Ripple Two legal memos are now unsealed. Defense lawyer former federal prosecutor James K. Filan says the legal memos prove Ripple is not a security.
#XRPCommunity #XRP #SECGov v. #Ripple #XRP BREAKING: BELOW ARE THE TWO LEGAL MEMOS THAT HAVE NOW BEEN UNSEALED.https://t.co/I5TsOcAUq6https://t.co/upcQc2Z8pK
— James K. Filan ???? (@FilanLaw) February 18, 2022
Filan says the opened memos are very favorable to Ripple.
“Overall favorable to Ripple and the Individual Defendants. Both memos are from Perkins Coie. The first memo was prepared in February 2012 and sent to Jed McCaleb and Jesse Powell. It says that if NewCoin is sold in what now would look like an ICO.”
Former federal prosecutor finds out that there was never a term ICO used.
“(I didn’t see the term ICO used), it would be likely that it would be considered a security. But Ripple then revised its business plan and returned to Perkins Coie, which issued a second memo in October 2012. This second memo was sent to Chris Larsen and Jed McCaleb.”
He further explains that the October memo was more favorable for Ripple as it shows how careful Ripple was trying to avoid not engaging SEC from any angle. He said that the fact that Ripple had the foresight to seek legal advice from a prominent firm in 2012 – in the absence of clear case law and five years before the SEC even started talking about digital assets – should be applauded.
“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 SEC’s risk of disagreeing with Perkins Coie. The memos cover the full landscape of legal issues (not just the issue of securities), showing how careful Ripple was trying to be. Also, this was five years before the SEC even started talking about digital tokens.”
The memo proved that Ripple was cautious; Ripple never ignored any risks and was very proactive.
“It seems to me that Ripple was being very proactive, which is very important. There certainly is nothing in these memos that suggests that Ripple was being reckless or ignored any substantial risks. The memos suggest the opposite – that Ripple was being careful.”
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