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John E Deaton Profile picture
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6 Nov, 4 tweets, 4 min read
THE SEC CLAIMS ALL #XRP ARE UNREGISTERED SECURITIES.

Here is proof from the Complaint itself, filed by the SEC👇
#XRPHOLDERS SUED THE SEC ASKING IT TO AMEND THE COMPLAINT AND ONLY ALLEGE #XRP IS A SECURITY WHEN @Ripple SELLS #XRP.

#XRPHolders argued that the SEC could not in good faith claim that the #XRP traded in the secondary market, completely independent of Ripple, were securities.
BUT THE SEC REFUSED.

Incredibly, the SEC argues ALL #XRP are investment contracts with Ripple.

“The XRP traded, even in the secondary market, is the embodiment of those facts, circumstances, promises and expectations, and today represent that investment contract.” 👇👇👇
The language above👆 is from the SEC’s opposition to #XRPHolders’ motion to intervene.

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More from @JohnEDeaton1

John E Deaton Profile picture
1 Nov
Remember when @ethereumJoseph tried to argue @Ripple and #XRP weren’t competitors to #Ether? That was a definite signal that #XRP was, in fact, viewed as a threat. In 2018, when Lubin made that assertion, #XRP was battling #Ether for the #2 spot behind #Bitcoin

Now read this👇
I don’t represent @Ripple. I do represent, however, 58K #XRPHolders and calling #XRP a “useless token” is both idiotic and untrue. Having that much animus against #XRP AFTER #Ether was given a regulatory free pass nonetheless proves #XRP was and still is perceived as a threat.
@CGasparino’s tweet below👇 is part of the #Ether free pass timeline. It was Andrew Keys who slipped up and told Gasparino that the Brooklyn Project’s efforts were approved by the SEC. One would assume a free pass would generate more grace and confidence in those who benefited.
Read 22 tweets
John E Deaton Profile picture
22 Oct
Go to crypto-law.us to find what you need related to the @Ripple / #XRP case. Read Howey for yourself.
The Howey Test:

“The test is whether the scheme involves an investment of money in a common enterprise with profits to come solely from the efforts of others.”
Notice the word “scheme” is used, NOT “asset”.

The very next sentence reads:

“If that test be satisfied, it is immaterial whether the enterprise is speculative or non-speculative or whether there is a sale of property with or without intrinsic value.”
Why does the SEC focus so much on the underlying asset? Anything can be “schemed”, packaged and marketed as an investment contact aka security.

The Orange Groves or the 🍊 weren’t the securities. The SEC also keeps arguing that the only utility for #XRP is speculation.
Read 4 tweets
John E Deaton Profile picture
21 Oct
William Hinman gave Ether a free pass regarding its ICO because he adopted the decentralization argument fed to him by prominent Ether investors.

That’s a fact, not an opinion. Nancy Wojtas was there and she speaks the truth. @CGasparino @EleanorTerrett @LizClaman @TeamCavuto👇
Hinman never explained exactly what about Ether’s “decentralized structure” caused sales of Ether to fall outside the U.S. securities laws. Its
3 1/2 years later and market participants and investors still don’t know how to define “sufficient decentralization.”
@Ripple fought hard to get any evidence related to the SEC’s analysis of Ether, #Bitcoin and XRP.

If Ripple can show the #XRPLedger is equal or more decentralized than the Ether Network, Ripple could win based on fair notice.

But what does “sufficiently decentralized” mean?
Read 25 tweets
John E Deaton Profile picture
11 Oct
#XRPHolders 🆚 @SECGov 🆚 @Ripple

THESE ARE THE FACTS AND THEY ARE NOT IN DISPUTE:

Mar. 23, 2017: Clayton agrees to recuse himself from voting on any matter related to his law firm’s (Sullivan & Cromwell) clients;

Nov. 30, 2017: Lubin & Consensys announce the Brooklyn Project
Dec. 13, 2017: Hinman has a meeting w/ Lubin & Consensys and lawyers from Sullivan & Cromwell (Clayton’s law firm);

Dec. 14, 2017:
Matt Corva of Consensys (along w/ lawyers from Sullivan & Cromwell) state that they are building an alliance with the SEC;
Jan. 25, 2018: Clayton meets with Andreesen & Horowitz and instructs them to put together a group and write up a memo. Perkins Coie, a member of the EEA, leads this group of Ether investors;

Mar. 12, 2018: @bgarlinghouse speaks publicly about Ripple using #XRP to replace SWIFT;
Read 25 tweets
John E Deaton Profile picture
10 Oct
Why would someone who dislikes @Ripple or @bgarlinghouse and doesn’t own #XRP want to join the fight against the SEC?

Read the Complaint filed by the SEC and ignore the noise it intentionally alleges in order to distract and divide. Thank God the judges are paying attention.👇
In the Order granting #XRPHolders amici, the Court takes notice of the absurd allegation that Ripple created the secondary market for XRP AND because exchanges sold the XRP that Ripple sold to them to the public we ALL entered into a common enterprise with Ripple AND each other🤦‍♂️
Skeptics will argue the Court misunderstands what the SEC is alleging. But the Court is 💯 on 🎯

Below are actual paragraphs from the Complaint. The over-broad far-reaching allegations could be applied to any crypto asset, including #Bitcoin
It’s both absurd and dangerous.⛔️
Read 4 tweets
John E Deaton Profile picture
11 Sep
WHO REVIEWED & HELPED WRITE THE HINMAN SPEECH?

Who was on the 63 emails that included a draft of the speech?

Where is Hinman’s public calendar?

Who purchased large quantities of #Ether between December 2017 to June 13, 2018?

$10k in #ETH ICO = a net worth more @GaryGensler👇
@ethereumJoseph received 9.5% of #ETH as a co-founder.

Everyone knows @VitalikButerin and Lubin held an ICO through crowdfunding which was without a doubt an unregistered securities offering.

Where was @SECGov?

Where is outrage from those that attack @Ripple & #XRP?
One River bet $1 billion on #BTC and #Ether in October 2020. Two months later on his last day at the @SECGov, Clayton directs the enforcement action against @Ripple and #XRP. Twelve weeks later, Clayton joins One River.

Clayton’s law firm represented Lubin and #Consensys.
Read 25 tweets

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