Revealed internal documents from the SEC contain discussions about Ripple's influence on XRP, previously undisclosed.
SEC Discussions on XRP
Documents released after Coinbase's FOIA request indicate that in 2021, SEC staff questioned whether the XRP Ledger could operate without Ripple. This question is crucial under the Howey Test, used by the SEC to determine if an asset should be regulated as a security.
Regulatory Approaches to Ethereum
The same document release reveals that Ethereum was also involved in private regulatory discussions. In June 2023, Shamiso Maswoswe from the New York Attorney General’s office reached out to the SEC requesting legal backing for the argument that ETH should be regulated as a security.
Changes in SEC Tactics
The SEC's enforcement tactics have softened since a change in leadership. Some high-profile cases against Ripple and Coinbase have been rolled back or dismissed. Still, internal records suggest XRP’s status may have been determined behind closed doors.
Discussions within the SEC indicate that the paths to resolving regulatory questions about digital assets are deliberated for a long time, potentially highlighting a bias against Ripple and XRP.
