Thread by @JohnEDeaton1

Imagine a well respected former SEC Commissioner who acted as a liaison between the @SECGov and #Ether investors. Imagine this Commissioner being instrumental with #Ether investors communicating with the SEC, helping it understand the underlying blockchain technology and network.

Imagine this former SEC Commissioner becoming very familiar with the #Ether Token and Network. Imagine the assistance provided by this former SEC Commissioner and securities law expert (and Stanford Law Professor) helped, in part, lead Hinman to give his #Ether Free Pass Speech.

Imagine 18 months later this former SEC Commissioner learns his colleague, Jay Clayton, is contemplating filing an enforcement action against @Ripple and #XRP, as Clayton and other senior officials are leaving the SEC forever.

Imagine he learns the SEC intends to claim present day #XRP is an unregistered security - although it was traded openly for more than 7 years. Imagine this securities expert becoming confused and dumbfounded as to why the SEC leadership was rushing to file a lawsuit 🆚 #XRP.

Imagine this SEC Expert being so troubled by what he was witnessing he felt compelled to write ✍️ a letter to Clayton and the other Commissioners warning and pleading with them to not file a case under such befuddling and suspicious circumstances.

Imagine he writes:

“The proceedings implicate a broad range of policy concerns with significant consequences for the nation’s financial and securities markets.”

“Those proceedings can have significant effects on the evolution of emerging technologies involving novel forms of financial transactions, as well as for banking, money transfer, and other markets far beyond the Commission’s legal remit.”

“The implications are international.”

“No pressing reason compels immediate enforcement action.”

“The contemplated enforcement proceedings alleges no fraud, misrepresentation, or omission.”

“But simply initiating the action will impose substantial harm on innocent holders of XRP, regardless of the ultimate resolution.”

“Upon learning of the proceeding, intermediaries will cease transacting in XRP because of the associated legal risks.”

Imagine this SEC and Securities Expert warning that he could find no other non-fraud securities case in U.S. history that would rival the devastation to innocent holders than the filing of the this case.

Imagine this SEC Expert, who understood the #Ether Network because he helped #Ether investors communicate it to the SEC, stating that it was fundamentally unfair for the SEC to claim #XRP is a security while leaving #Ether alone.

Imagine this SEC and #Ether Expert informing Clayton and the Commissioners that the SEC had not made any “material distinction between #Ether and #XRP.”

Imagine this SEC and Securities Law Expert feeling so strongly about what he was witnessing that he actually wrote:

“IMPOSING SECURITIES LAW OBLIGATIONS ON XRP WHILE LEAVING ETHER UNTOUCHED RAISES FUNDAMENTAL FAIRNESS ABOUT THE EXERCISE OF COMMISSION DISCRETION”

“If the Commission is to maintain its tradition of fairness, Ether and XRP should be treated similarly: if Ether is to be allowed to trade freely in the market, so too must XRP, and if XRP is to be subject to restrictions, so too should Ether.”

“Any other result creates a competitive imbalance that cannot be rationalized with reference to fair enforcement of the federal securities laws.”

If you can imagine 5 pages of commentary and analysis consistent with the above, you can imagine the Grundfest letter addressed to Clayton, @HesterPeirce, @SECHerrenLee, Caroline A Crenshaw, and Elad Roisman and copied to senior leadership at multiple divisions of the SEC.

The Grundfest letter was written on December 17, 2020. But what about today - a year later? How does he view the lawsuit. 👇

https://twitter.com/digitalassetbuy/status/1465662815746801672