While the entire US crypto industry (exchanges, funds, associations, PsPs, lobbyists, etc) is currently focused on fighting the AML rules proposed by FinCEN, the XRP Community has been left ALONE fighting the securities battle FOR THE BENEFIT of the whole industry.

The entire US crypto industry (excluding the XRP Community) has been miserably failing to acknowledge that, until now, all the SEC has had for purposes of characterising a blockchain-based token as a security under the Securities Act of 1933 ...

... is a 75 year-old judicial precedent (i.e. 1946 Howey Test), and some non-binding internal guidance. That's it. Nothing more. No clear federal regulations and no clear binding precedents.

Should the SEC definitively win the Complaint filed against Ripple, it would gain a contemporary (and *binding*) judicial precedent essentially defending the posture that it is rightful to apply a 75 year-old precedent to 2020's cutting edge technology, ...

... giving the SEC's enforcement division a clear path moving forward within the crypto industry.

With such precedent (which the SEC hasn't been able to obtain so far, as a result of the early settlements reached with other crypto projects), the SEC would be ...

... ultimately legitimized to go after every other crypto project whose characteristics could eventually fall under the prongs of a 75 year-old Test, i.e. probably all cryptocurrencies excluding Bitcoin and maybe Ether.

This would eventually force all the US crypto industry participants to reduce the scope of their business models to only two digital assets, therefore limiting available revenue channels and freedom to innovate with new technological tools.

However, the US crypto doesn't seem to care about that, and will rather go as far as throwing a single project under the bus (despite the destructive consequences potentially deriving from it), in an attempt to short-sightedly mitigate ...

... a 'supposed' risk of being charged with liabilities associated with facilitating the sale of unregistered securities that haven't actually been definitively classified as such.

The US crypto participants have failed to properly assess risks and have failed to identify the current aspects of the market that could derive, in the long-term, to material adverse effects in prejudice of their own businesses.



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More from @Arturo_P_A

25 Dec 20
Just finished reading the SEC v. Ripple Complaint — Most of the allegations in re. XRP being a security are built around the false idea that investors bought an asset that had no 'use' beyond speculative purposes.

This is exactly where their whole case cracks up.

Ripple has to properly document and demonstrate all the 'uses' made available by the XRPL since the beginning of times. Some of them include:

- Immediate and cheap peer-to-peer transfers (everyone could be its own ODL since XRPL was first launched).

- Every XRP investor has had access to a fully functional decentralized exchange since the very beginning, being able to use XRP to trade against a variety of IOUs.

- XRP has been a very useful instrument for payments since it came into existence.

Read 12 tweets
9 Mar 20
March 9, 2020

Congressman Paul Gosar introduced the "Cryptocurrency Act of 2020" to determine which US regulator is responsible for which digital assets (DAs).

The proposal divides DAs into 3 main categories:



1) Crypto-Commodities are defined as goods or services, including derivatives, that:

a)have full or substantial fungibility.
b)the markets treat with no regard as to who produced the goods/ services; and
c)rest on a blockchain or decentralized cryptographic ledger.

2) Crypto-Currencies are defined as representations of USD or any synthetic derivatives therein, either based in algorithms, smart contracts or collateral to stabilize against USD.
Read 10 tweets

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