Thread by @JohnEDeaton1

RIPPLE AND THE SEC CAN BOTH WIN.

Now that we have arrived at summary judgment time, I see a lot of comments on how @Ripple can’t lose at all. Not true.

Its possible that both sides win - technically and legally speaking, that is.

Ripple and the SEC will agree to a laundry list of agreed upon stipulated indisputable facts. Those stipulated facts can remove the case from being decided by a jury. If the parties can’t agree, a jury decides what actually happened - the jury decides the facts.

For example, if the parties in a car accident case don’t agree what color the Traffic light🚦was, the jury decides. But if both parties agree the light was red, there’s no need for a jury to decide that fact.

Hence, Ripple and the SEC could agree to all of the relevant facts.

If that happens, then the Judge applies the law to those set of facts and gives her ruling.

Here’s a hypothetical example: the SEC and Ripple agree that in February 2013, Ripple sold an option for 1 billion #XRP to Investor B, valued at .05 per #XRP, for $25M dollars.

J. Torres, applying Howey factors could determine that on that day in 2013 Investor B gave $25M (an investment) into a common enterprise (Ripple) w/ a reasonable expectation of profit b/c Ripple explained all the efforts it intended to make to drive adoption and utility of #XRP.

If the above factual scenario was agreed to, the judge could find that specific offering of #XRP, an investment contract w/ Ripple. SEC wins!

Ripple could still win b/c the judge applying those same factors decides ongoing sales of #XRP by Ripple are NOT securities. Ripple wins.

The judge should find that secondary market sales of #XRP independent of Ripple are also not securities. #XRPHolders win.

Here is a brief analysis I did at the one year anniversary of the lawsuit related to today’s #XRP. 👇

https://twitter.com/JohnEDeaton1/status/1473504671964839941