The lawsuit between Ripple and the SEC is about to reach an important moment: the release of the memos of Ripple’s lawyers. This will take place on 17 February.
The content of the memos
According to the SEC, those documents are evidence that Ripple was aware that it was proceeding with the sale of securities that were, to all intents and purposes, securities in 2012. The sentiment on XRP’s side was different: at the time, lawyers reassured that the sale of XRP was not a sale of securities.
As reported by Reuters, Ripple general counsel Stuart Alderoty said that when these documents are discovered, they will prove that:
“in 2012 Ripple received a legal analysis that XRP was not an investment contract”.
What is puzzling, according to Alderoty, is that it took the SEC eight years to file a lawsuit against the sale of XRP tokens, which have since circulated freely in the market. He added:
“We look forward to the public having access to these documents as we continue to vigorously defend this case”,
These words reveal a certain confidence in the content of the documents. This feeling was reflected in the price of XRP.
The price of XRP
Looking forward to this key date, XRP investors seem optimistic. Compared to the last 7 days, it is up 44%. XRP is currently worth $0.87, and after a slight retracement in recent days, followed by days with a strong rally, it is now back on the rise.
What is propelling XRP is not only the fact that the market is totally in the green, but also the optimism regarding the evolution of the lawsuit against the SEC. It seems that XRP holders are becoming convinced that the lawsuit against the SEC is destined to see the Securities and Exchange Commission lose.
The consequences of the ruling in the case between the SEC and Ripple
However, there is a long waiting period, as the lawsuit is unlikely to end before August-September. In short, after 17 February there could be other twists and turns that could cause the price of XRP to rise and fall. The conclusion of the lawsuit, however, will not only affect XRP but the entire cryptocurrency sector.
The airdrop of Flare
In the meantime, XRP holders are waiting for another delayed event: the airdrop of the Flare token. The project was launched in December 2020. As of 12 December 2020, those holding XRP tokens in the wallets of participating exchanges would receive FLR tokens. Over a year later, those tokens have not been distributed.
As explained by Flare’s CEO Hugo Philion, however, they are almost ready. The final steps for the release of the token are being defined and a roadmap will soon be announced. There are also contacts with some large exchanges to define the requirements to have to build the token. The conclusion, at least in this case, is possibly near.