Thread by @JohnEDeaton1

This Thread discusses one of the theories that I allege in our legal action against the SEC. It’s called REGULATION by ENFORCEMENT. @HesterPeirce and the new SEC Chairman Elad Roisman have both publicly stated that it SHOULD NOT be practiced. forkast.news/sec-commission…

Former SEC Chairman Clayton stated many times when asked about XRP that the SEC can’t comment on any a specific product or company. He would only say “if it’s a security, we will regulate it.” He was asked repeatedly by CNBC reporters and at FinTech conferences specifically about

XRP. He was asked whether XRP would get the same status as BTC and ETH. He repeatedly stated that the SEC would not comment on specific products. But this runs afoul of the SEC Mission Statement which states the SEC WILL SHARE information about companies to help investors make

informed decisions. XRP has been traded on over two hundred exchanges worldwide for the past seven years with a daily volume between $10-26 billion. Clayton knew there may be investor confusion yet remained quiet until the day before he leaves office, SEVEN YEARS Later, declaring

XRP an unregistered security.
If the SEC refuses to make comments on companies and/or specific products as Clayton suggests, then that leaves the industry and investors to wildly speculate as to what the SEC may or may not do. Clayton himself seemed confused about securities.

He has publicly stated that if a person purchases a token and someone goes out and does a venture and that effort increases the value of the token, it is a security. This sole characterization of what constitutes a security is absolutely WRONG!

Clayton has also stated that if a person gets a “return” in the secondary markets from the token, it is a security. That would make everything a security including BTC. Maybe Clayton and the SEC are confused as to
what a security is in the context of Blockchain technology and

Digital Assets. Maybe the SEC
doesn’t know or understand how Digital Currencies fit in the regulatory scheme. Maybe, Clayton and the SEC have used the XRP action as a way to engage in regulation by enforcement by going after the
third largest Cryptocurrency?

It’s not likely the SEC can file suit against Satoshi Nakamato
related to BTC! Is the attack
on XRP a way to open the door on all of Crypto? The good news is that Acting SEC Chairman Elad Roisman has publicly been critical of this regulation by enforcement practice.

He has stated that he always analyzes on a case by case basis with investor welfare as his “North Star.” He stated, “when considering market
participants acting in good faith to comply with the rules, enforcement should be the last resort not a first resort.”

At SEC Speaks 2020, Roisman stated “we should not use our enforcement powers to promulgate and set new legal standards.” Roisman
expressed concern that regulation by enforcement can undermine the rule making process in the Administrative Procedure Act, which provides for

public comment.” Remember former SEC Chairman Grundfest warned Clayton not to file the enforcement action against Ripple the way it did because it would cause Unprecedented damage when no exigency existed and considering XRP has traded for 7 years. Clayton ignored this warning.

Clayton wouldn’t allow for comment by the incoming
administration that was assuming control in less than 30 days, let along wait for public comment. Let’s hope between @HesterPeirce and Elad Roisman, this practice of regulation by enforcement ends soon.