Amid the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), Ripple’s native cryptocurrency, XRP, has defied the odds and continues to surge despite encountering minor resistance and changing market sentiment.
The lawsuit unfolded, and the Hinman speech documents were brought to light; an intriguing revelation emerged: the ownership of XRP by the defendants was never the focal point of contention, according to the lawyer representing XRP holders.
Attorney John Deaton, serving as Amicus Curiae in the long-running XRP lawsuit, referenced the Safe Harbor Proposal. He drew attention to a statement by United States Representative Warren Davidson, indicating that some blame should be assigned to former SEC executives Clayton and Hinman during their tenure.
Ripple’s XRP Left Adrift As Safe Harbor Proposal
Deaton disclosed a crucial fact, saying that on March 28, 2018, a representative of Andreessen Horowitz (a16z) met with Hinman, then the director of the SEC. It is essential to highlight that Hinman had received a thorough document presenting the Safe Harbour Proposal before this discussion. Only Ethereum (ETH) appeared to find a haven throughout the conference. Deaton notes that, aside from XRP, this proposed rule may have also applied to other tokens.
The XRP lawyer further elaborated that both former SEC executives, Hinman and Clayton, understood that a safe harbor could provide an avenue to deviate from a principle-based approach. Interestingly, despite the discussions and proposals, the Safe Harbor plan was not adopted, leaving room for speculation on the potential ramifications it could have had.
As the lawsuit between Ripple and the SEC unfolds, these newfound insights add another layer of complexity to the case and shed light on the various factors influencing the regulatory landscape surrounding cryptocurrencies. Market participants keenly observe further developments, awaiting the potential impact on Ripple and its major digital asset, XRP. The outcome of this lawsuit can shape future regulations and set precedents for the broader cryptocurrency industry.