#StopLossStrategies

The XRP Howey Memo and SEC Inaction

Deaton highlighted the importance of an internal SEC document called the “XRP Howey Analysis Memo,” written by SEC enforcement staff and dated June 13, 2018—just one day before then-Director William Hinman’s widely discussed speech declaring Ethereum was no longer a security.

According to Deaton, the XRP memo did not recommend enforcement action or a cease-and-desist order, indicating that SEC staff at the time did not conclude XRP was a security.

At the January 2019 meeting, Coinbase reportedly made clear that it would list XRP unless the SEC explicitly disagreed. Deaton stated that the SEC neither objected nor tried to stop Coinbase. XRP was listed on February 26, 2019, and shortly after, Coinbase promoted XRP and USDC as a cost-effective solution for cross-border payments.