Thread by @JohnEDeaton1

WHY THE SEC v. RIPPLE CASE IS THE MOST SIGNIFICANT @SEC_Enforcement CASE IN MODERN HISTORY: Part 4

THE ⛔️ WARNINGS ⛔️ THAT I’VE TWEETED REGARDING AN OVERREACHING GOVERNMENT HAVE COME TRUE

THE SEC HAS JUST PUT THE ENTIRE CRYPTO COMMUNITY AND DIGITAL ASSET SPACE ON NOTICE

https://twitter.com/HesterPeirce/status/1365393040811188227

I’ve warned the #Bitcoin Maxis that not even the King 👑 of Crypto #BTC is safe from an out of controlled scared government. I share the views of @RaoulGMI and others about ending the Crypto Tribalism that permeates the Digital Asset industry. A united crypto community is

https://twitter.com/johnedeaton1/status/1356026021347209221

necessary to withstand the attacks from the outside world, especially from government. Many of you saw my immediate reaction when @HesterPeirce tweeted the 🚨 RISK ALERT 🚨 above and requested feedback. After reviewing it more carefully, I was hoping to find something positive.

Let’s be real, my tweet threads have been a bit negative or even angry lately. But after reading this WARNING, disguised as a “Risk Alert,” my anger turned to genuine fear. Not fear of the @SEC_News or it’s lawyers, but genuine fear that it’s too late to save the United States

from itself. It’s clear that the United States WILL NOT be the leader in global trade and finance moving forward. I now believe that my earlier warnings that @SEC_Enforcement vs. @Ripple, @bgarlinghouse and @chrislarsensf is potentially a signal that the SEC is coming after all

Cryptocurrencies and Digital Assets is, in fact, accurate. Some of you may think that I’m being paranoid and that I’m an alarmist?

If so, please take 20 minutes and read the SEC Risk Alert yourself. In fact, if the SEC didn’t title it as a “Risk Alert,” I wouldn’t even know

what it is. I wouldn’t know how to describe it or what to call it. To understand what I’m getting at, you don’t even have to read past footnote # 1. Here’s that footnote in it’s entirety:

“This statement represents the views of the staff of the Division of Examinations

(formerly known as the Office of Compliance Inspections and Examinations). It is not a rule, regulation, or not a statement of the U.S. Securities and Exchange Commission (“Commission”). The Commission has neither approved nor disapproved its content. This statement,

like all staff guidance, has no legal force or effect: it does not alter or amend applicable law, and it creates no new or additional obligations for any person.”

What the hell does that mean?

I will tell you exactly what it means. It means that you and I can NEVER rely on or

use the statements or information contained within this public alert. We can’t even bring it up to be used against the SEC in any possible way.

But the @SEC_Enforcement can use it against us if they choose, and now, it can claim it provided a warning and/or an alert on the

subject before filing an action against any person, business group, or entity. This so-called Risk Alert covers basically all the different categories of cryptocurrencies and all the different potential groups of investors. For example, the Risk Alert states the following:

“This Risk Alert provides observations made by Division staff during examinations of investment advisers, broker-dealers, and transfer agents regarding Digital Asset Securities that may assist firms in developing and enhancing their compliance practices.”

Translation: So, basically, all this Risk Alert does is allow the SEC to later claim that they warned investors, developers, venture capitalists, exchanges, broker dealers, etc that the SEC Enforcement Division may, one day, come after them for noncompliance.

Why do I say that?

Because this Risk Alert also states the following:

“In addition, as more securities industry participants seek to engage in digital asset-related activities, this Risk Alert provides transparency about areas of focus for the Division’s future examinations.”

Future examinations?

Yes, the SEC is letting us all know that they will be bringing more enforcement actions in the future regarding Digital Assets.

So now you may be thinking, but that doesn’t mean the SEC is going to go after all digital assets and cryptocurrencies, Deaton!

So let’s review what

the SEC says on the matter of Digital Assets. In the Risk Alert the SEC further states:

“Digital assets essentially operate on software running across networks of peers that create and maintain shared ledger accounting for holdings of these assets. For purposes of this

statement “forked” refers to backward-incompatible protocol changes to a distributed ledger that create additional versions of the distributed ledger, creating new digital assets. For the purpose of this statement, “airdropped” refers to the distribution of digital assets to

numerous addresses, usually at no monetary cost to the recipient or in exchange for certain promotional or other services.”

Did you read that? Do you understand now? The SEC is putting us on notice that it is in charge of all categories of Digital Assets. Forked Assets included.

Airdropped Assets included. The bottom line is that the SEC can now claim that it warned everyone that they better be in
compliance, whether it’s a forked asset, an airdropped asset, or any version of any digital asset.

The most shocking hypocritical statement in this

Risk Alert is the following:

“The Division understands that, as financial innovation continues, market participants may have
questions as to their regulatory obligations.”

Are you fricking kidding me? Isn’t that exactly what @coinbase and other exchanges did as late as 2019

when they informed the SEC that they were going to list #XRP but wanted to make sure the SEC didn’t consider #XRP a security? Yet, the SEC provided zero guidance and allowed the exchanges to list #XRP in 2019, only to file suit against Ripple and all #XRPHolders.

Now, as feared, the Ripple
enforcement action is really a precursor of the future.

@elonmusk is 💯 percent correct when he states that he considers the SEC a joke and has zero respect for the agency.

Nowhere in this SEC alert is there any real guidance related to Digital

Assets. Unlike the SEC, the U.K. has provided guidance to the industry. See below.

The Cryptocurrency and Digital Asset industry must see what’s happening before our very 👀

WE MUST UNITE

https://twitter.com/johnedeaton1/status/1361140575160918017