John E Deaton Profile picture
Jan 19 10 tweets 4 min read
TO MY INTERNATIONAL #XRPHOLDERS:

I am proud to announce @CryptoLawUS’s International Connect to Congress Call for Action.

As promised, we have activated an option for international holders to connect to the U.S. Congress.
It is a Petition to the four key members who can open an investigation.

change.org/CryptoLaw-Intl…

I ask that only international holders use this petition option, and U.S. holders keep using the Connect to Congress app. This will maximize the power of both, and not dilute either.
This will be a Petition to the Banking Committee’s Leadership @SenSherrodBrown (D-OH) and @SenToomey (R-PA), and Representatives @RepMaxineWaters (D-CA) and @PatrickMcHenry (R-NC).
The International Petition mirrors the message from U.S. Holders via Crypto-Law.us’s Connect to Congress:

It reads:

We are writing to you as the Chairpersons and Ranking Members of the U.S. Congressional committees overseeing the Securities and Exchange Commission,
because we are foreign citizens and digital asset holders who have been grievously harmed rather than protected by that agency. The SEC's enforcement actions on cryptocurrencies have involved the appearance of improprieties and conflicts of interest among officials,
and should be investigated.
 
Attorney John Deaton, who represents over 64,000 digital asset holders in an ongoing action against the SEC, has compiled evidence that SEC officials may have colluded with outside parties to regulate cryptocurrencies
in line with their personal financial interests. Here is a link to Deaton's summary of the evidence: crypto-law.us/the-ethereum-f…
 
The SEC under @GaryGensler has refused to address these troubling questions, resisted Freedom of Information Act (FOIA) requests
and ignored media reports. The stonewalling must end if there can be any faith in the markets and in government oversight.
We, the undersigned, ask that you use your oversight responsibility to open an investigation into the SEC's enforcement practices on cryptocurrencies and the apparent conflicts of interest among those responsible for issuing guidance and taking enforcement actions.
My plan is after we have sent an impressive number of messages from U.S. holders (we are approaching 10,000 message requests specifically calling for an investigation) and we match that number from International Holders, I will go to D.C. and not leave until I get a meeting.

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More from @JohnEDeaton1

Jan 19
@EleanorTerrett and I were discussing the Judge’s ruling today
b/c, as usual, her and @CGasparino seem to be the only journalists recognizing the magnitude of this case on the overall Digital Asset space. I re-read the decision and here are my final takeaways:
The June 13, 2018 legal memorandum 📝 regarding whether #XRP is a security (conducted by SEC legal staff) IS PRIVILEGED and will NOT be turned over.

But the Judge noted that the legal staff members who wrote this analysis:

“did not present a recommendation to the SEC.”
This finding is VERY significant. This means that after the SEC’s legal analysis, as of June 13, 2018, they did not recommend bringing an enforcement action against @Ripple @bgarlinghouse or @chrislarsensf regarding #XRP as a security.
Read 18 tweets
Jan 18
PROOF TODAY’S #XRP FAILS THE HOWEY TEST

1) an investment;
2) in a common enterprise;
3) with a reasonable expectation of profits;
4) from the efforts of others.

#XRPHolders use the token itself to stake #XRP for interest (profit) or as collateral for a fiat loan.

Factor #4 👎
If you acquired #XRP for non-investment reasons factors 1 & 2 are not satisfied. Time magazine accepts #XRP along with thousands of content or service providers (merchants, coil, tips). Non-profits accept #XRP as donations. Employees & Businesses use #XRP as payroll currency.
I know of #XRPHolders who acquired the minimum amount of XRP just to establish the trust line to send money abroad utilizing the #XRPLedger or the DEX. Their intent was to utilize XRP as a tool for its utility - as a bridge or transfer asset.

The token itself is not a security!
Read 4 tweets
Jan 17
Many people, like Ian, believe @Ripple violated securities laws and should be sued by the SEC accordingly. Some believe that just b/c #Ether investors violated the law doesn’t excuse Ripple from it’s wrongdoing. Regardless of whether you agree, this is not an unreasonable stance.
What is unreasonable is the SEC abandoning all truth and law and arguing absurdly:

“the very nature of XRP in the market”

&

“the nature of XRP itself”

make all #XRP securities. Note the quotations. This language is directly from the Complaint filed against Ripple and #XRP.👇
Some people don’t know or refuse to accept that the @SECGov could’ve easily sued @Ripple @bgarlinghouse and @chrislarsensf to enforce securities laws w/o devastating #XRPHolders and making a complete mockery of 76 years of legal precedent while destroying the SEC’s credibility.
Read 25 tweets
Jan 16
WHY DID THE @SECGov CHOOSE #XRP?🧵

If the SEC wanted to pick a top 10 Token to go after why would it choose the much more difficult case?

There’s a legitimate debate over whether today’s #ETH or #XRP (the networks - not token ownership) are more “sufficiently decentralized?”
But when applying securities laws to fundraising, there’s no debate over which is the easier case to prove. Ether held a pure ICO. Both Clayton and Gensler are on record stating they’ve never seen an ICO that wasn’t a security. @Ripple sold stock to VCs then sold XRP, but no ICO.
I said months ago that a monkey 🐒 could prove #Ether started out as an illegal securities offering. All you need to do is play video clips of the people responsible for the offering. @stevennerayoff has described himself as the architect behind the #ETH fundraising. Listen 👂👇
Read 37 tweets
Jan 11
WHY WON’T GARY GENSLER ADMIT TODAY’S #ETHEREUM IS
NOT A SECURITY?

A brief 🧵 providing the answer.

[hint: if you own #ETH, you won’t like the answer]
On April 23, 2018 @GaryGensler at MIT Business of Blockchain. 👇👇

Then-former CFTC Chairman Gary Gensler says there is not regulatory clarity in the digital asset markets, and “for @Ripple” & there “needs to be clarity in the market.”

Sounds like a decent fair notice argument!
But despite Gary Gensler declaring that there was no clarity in the market for #XRP or #ETH, he is coming after all of crypto. Why should #ETH holders be concerned? He was well aware of @ethereumJoseph, Chris Dixon, and the secret meetings with the @SECGov for an #ETH free pass.
Read 7 tweets
Jan 10
CONNECT TO CONGRESS

My goal when I started CryptoLaw was to help the individual investor. That’s why late last year I launched Connect to Congress, to help retail holders make themselves heard. Now, I’m going to ask again that we speak up… a 🧵
(1/10)
(2/10)
Since launching Connect to Congress last October, over 11,000 messages have been sent to every sitting member of Congress… and many are responding. It is working. They are starting to pay attention.
(3/10)
I believe what we need now is a focused action to help get answers about the glaring improprieties by the SEC that we’ve uncovered together, and that I’ve laid out on CryptoLaw.
crypto-law.us/the-ethereum-f…
Read 10 tweets

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