Public documents indicate that the US Securities and Exchange Commission (SEC) previously described Ripple as a “digital currency company”.
Attorney and XRP enthusiast Jeremy Hogan discovered the reference in a 2016 SEC public document.
The lawyer explains,
“Apparently the SEC has approved FinCen – at least in 2016! The SEC now has to explain to the Court of Justice how a “digital currency” has transformed into “digital security”. “
The SEC filed its lawsuit against Ripple in late December, declaring XRP a security and accusing the San Francisco payment company of selling the crypto asset without proper authorization.
The regulator also filed a lawsuit against Ripple executives Brad Garlinghouse and Chris Larsen, alleging both played important roles in negotiating and approving Ripple’s institutional sales.
On Tuesday, Judge Sarah Netburn, chairwoman of the case, granted Ripple the right to review the SEC’s internal discussions to determine whether or not the commission distinguished XRP from Bitcoin and Ethereum in those talks, Law360 reports.
The SEC does not classify Bitcoin or Ethereum as securities. Netburn reportedly described their decision as a “high stakes” discovery win for Ripple.
Garlinghouse, Ripple’s managing director, appears pleased with Netburn’s decision.
Today was a good day.
– Brad Garlinghouse (@bgarlinghouse) April 6, 2021
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Featured image: Shutterstock / GrandeDuc