XRP Lawsuit News: Ripple’s native crypto, XRP is on a surge despite facing minor resistances and change of sentiments in the market. As the U.S. Securities and Exchange Commission (SEC) Vs Ripple lawsuit unveiled the Hinman speech documents to the public, XRP holders’ lawyer suggests that the defendants’ ownership of the outstanding XRP was never the issue.
XRP Didn’t Make It To Safe Harbor
Attorney John Deaton, Amicus Curiae in the long running XRP lawsuit mentioned the Safe Harbor Proposal. He highlighted Warren Davidson, a United States Representative’s statement which conveys that some blame must be placed on former SEC executives Clayton and Hinman’s tenure.
As per the attorney, Andreessen Horowitz (a16z) representative met with then SEC director Hinman on March 28, 2018. It is important to note that Hinman received a lengthy memo with a Safe Harbor Proposal prior to this meeting. As the meeting was held, Ethereum (ETH) was the only token that made it to the safe harbor. However, this rule could have been applied to other tokens as well, except the XRP lawyer.
He added that former SEC executives Hinman and Clayton anticipated that a safe harbor held the potential to get away from principle based approach. Meanwhile, the Safe Harbor proposal wasn’t adopted.
Ripple Could Have Got 2nd Chance
Safe Harbor would have avoided legal actions against firms like LBRY and Ripple by giving them a notice of 5-10 factors showing sufficient decentralization. Pro XRP lawyer stated that the defaulters could have been granted 3-5 years in order to meet certain markers for a token to be a commodity.
Hinman considered that a substantial amount of ownership, anything more than 30-40% would be good for him. However, it is still difficult to know where to draw the line. Deaton added that the commission could have drawn the line and provided Ripple with around 3-5 years to reduce its holdings.
