Due to its ongoing lawsuits with the Securities and Exchange Commission (SEC) and the use of two newly announced regulatory notes, Ripple (XRP) has been in the limelight lately.
According to Ripple General Counsel Stuart Alderoty, the 2012 Perkins Coie notes awarded to Ripple’s founders are a testament to the company’s goodwill. Because in this effort, Ripple is trying to issue digital tokens without clear rules on how current government regulations apply to cryptocurrencies.
In short, Ripple sought Perkins Coie’s advice “for his firm commitment to doing things right, being on the right side of the law, acting responsibly,” Alderoty told Reuters.
However, Ripple Labs Inc sought advice not only on securities rules, but also on various banking, money laundering and tax legislation. Therefore, according to Ripple General Counsell, the SEC should have studied the Perkins Coie memorandum and used Ripple as an example of proactive compliance.
“As the company’s general counsel and a lawyer who has been practicing for 35 years, I find it incredibly offensive to have a government agency try to take those notes and use them like a sword or a club, instead of applauding a company that does the right thing.”
Ripple notes
As we previously reported, Ripple has released a series of 2012 documents from the law firm that contain “legal analysis and advice” regarding the ICO issuance decision as a requirement of the litigation.
It’s worth noting that law firm Perkins Coie informed Ripple officials in February 2012 that selling tokens to investors to fund a crypto network will likely be considered a security by US authorities.
In October 2012, Ripple goes to Perkins Coie with a revised second launch plan, and the law firm claimed in the second note that there was a “compelling argument” that the planned tokens would not be subject to federal securities laws. However, Perkins Coie pointed out that there is “some risk, albeit small,” that the SEC might consider crypto token securities “given the lack of applicable case law.”
As a result, the SEC sued Ripple and its two executives in December 2020, alleging that they sold unregistered securities between 2013 and 2020.
Ripple price prediction
It seems that the token has moved away from the results of the SEC lawsuit as seen in recent price movements. As Ripple continues to grow its payment system network, the asset moves with the broader market.
XRP has the potential to reach the $1 level and even further by the end of 2022, if optimism continues to reign around those looking to buy Ripple. Therefore, if the case is decided in favor of Ripple, the upbeat mood of XRP will likely strengthen and the price of the asset can be expected to exceed the $1 level in the process.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.