“Coin Center is …focused on the policy issues facing cryptocurrencies.
We …educate policymakers, and advocate for sensible regulatory approaches to this technology.”
Who exactly does coincenter advocate for? I don’t care if you despise @chrislarsensf or Garlinghouse, hundreds of thousands of individual #XRPHolders are being hurt by the SEC’s gross overreach in the @Ripple / #XRP case and the SEC needs to be called out over it.
3/9
The SEC isn’t limiting it’s claims of illegality to only include previous or present sales of #XRP issued by Ripple or it’s executives. The SEC is absurdly claiming the token itself is an unregistered security - including #XRP traded in the secondary market.
4/9
And before anyone attempts to minimize their own failure and neglect, claiming my interpretation of the allegations are inaccurate, Judge Netburn, presiding over the case, interprets the allegations the same. Read for yourself: 👇
5/9
In fact, SEC enforcement lawyers made it crystal clear in writing, as well.
Read for yourself:
“The XRP traded, even in the secondary market, is the embodiment of those facts, circumstances, promises, and expectations, and today represents that investment contract.”👇
6/9
When you read the Complaint filed by the SEC, there are multiples paragraphs that equally apply to #Bitcoin#ETH and other cryptocurrencies. The SEC’s argument in the #XRP case is the functional equivalent of claiming the oranges 🍊 themselves were the securities in Howey.
7/9
The relevant question is why haven’t the so-
called trade associations been more vocal - not in support of Ripple or it’s executives - but against the SEC’s gross overreach?
If the SEC limited it’s claims 🆚 Ripple to early sales of #XRP, I wouldn’t have sued the SEC.
8/9
If the SEC had instead sued the @ethereum Foundation, @ConsenSys, @ethereumJoseph and @VitalikButerin and didn’t limit the allegations to only include #ETH’s ICO and claimed today’s #ETH, including secondary market #ETH, are securities, I would’ve also sued the SEC.
9/9
SIXTY-SIX THOUSAND ONE-HUNDRED SEVENTY-TWO (66,172) #XRPHOLDERS from the United States 🇺🇸 and over 60 other countries from around the 🌏 have joined together to fight the SEC’s overreach. Whether we like or dislike Garlinghouse or Ripple is irrelevant to doing what’s right.
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Everyone knows that part already. But what I didn’t realize until @TigerMike15 pointed it out to me, was that Ripple was still providing both FinCEN and the DOJ Independent Audit Reports of #XRP sales until 2020 - the same year it was sued by the SEC.
You can read for yourself that Ripple was subject to an external audit requirement clause as part of the 2015 settlement wherein FinCEN declared #XRP “convertible virtual currencies.” Ripple had to hire an independent auditor that the DOJ and FinCEN didn’t object to.
I’ve read Jimmy’s 🧵 👇 and reviewed Judge Torres’ Local Rules related to Summary Judgement scheduling. As usual, when Jimmy Filan tweets or speaks we should listen. Read his 🧵 👇
The issue right now, as Jimmy points out, is w/r the parties have to comply w/ her normal process?
This is important for our amicus brief b/c if they file pre-motion letters, it will provide us w/ a lot of information each side is relying on (evidence, exhibits, deposition testimony, etc). After reading those pre-motion letters, I will know what info to ask to review.
If the parties ask and she agrees to waive her normal process and there are no pre-motion letters and the Court sets dates, we won’t get to see any information until the motions are filed. If that happens, I will have to figure out the best approach to gain access to information.
I’m getting a lot of DMs on what happens next with the @Ripple#XRP case. This Friday the SEC and Ripple are expected to file a joint proposed scheduling order to Judge Torres. It is likely to contain a deadline to submit any Daubert challenges related to expert testimony.
It should also include a deadline to submit summary judgment motions and a date to respond to each summary judgment motion.
That means the SEC and Ripple are likely to meet and confer this week (unless they already have) to see if they can agree on scheduling.
All we know so far, is that Ripple was pushing for mid-May. I think the parties will agree to an early June deadline for motions w/ responses due by the end of June.
If they can’t agree, each side informs the judge of their respective position and the judge sets the dates.
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.
I wasn’t privy to the talks between Ripple and the SEC. I assume the SEC made it clear it intends to appeal to J. Torres and attempt to appeal to the 2nd Circuit. I’ve maintained that this case has hurt Ripple’s business more than people think b/c of its international success.
Ripple does not want to place this case on hold while the Hinman emails are being litigated. Ripple likely wants certain motions to move forward with an ability to supplement the legal briefs with relevant and probative information ascertained from the Hinman emails, later.
I would anticipate Ripple wants to file a Daubert motion on one or more of the SEC’s 8 experts. A Daubert motion is when you challenge the testimony and opinions of an expert witness b/c the opinion is ultimately unreliable (ie b/c of flawed methodology, lack of foundation, etc).
3) Suing @bgarlinghouse & @chrislarsensf individually, even though fraud or misrepresentation ISN’T alleged, forcing the SEC to meet a much higher burden of proof to establish the executives were reckless in not knowing #XRP was a security (despite the SEC itself not knowing);
4) Worried about @Ripple’s fair notice defense, the SEC tried to be cute and called Hinman’s speech his personal opinion only, which waived any invocation of the deliberative process privilege.
Why were these rookie and glaring prosecutorial mistakes made by such smart lawyers?