Thread by @JohnEDeaton1

“My sense is that #XRP’s value is derived from enterprise profits resulting from the works of others. Howey wowie!”

- @andykessler of the @WSJ.

Andy, I represent 67,800 #XRPHolders from the U.S. and 60 other countries from around the 🌎

I’ve also been granted amici curiae status on behalf of #XRPHolders by Judge Torres in the @SECGov 🆚 @Ripple case.

Respectfully, what forms the basis or foundation underlying your “sense” that #XRPHolders are relying on the efforts of Ripple?

For example, are you aware the majority of first time purchasers of #XRP were completely unaware of a company called Ripple and its use of #XRP?

It is is quite difficult to rely on the promises and the efforts of a company you are completely unaware exists, don’t you agree?

Are you aware that there has been no evidence whatsoever offered establishing any price correlation (ie price appreciation) with public announcements by Ripple regarding the partnerships they’ve garnered utilizing #XRP?

Are you aware of the decentralized nature of the #XRPL?

Are you aware that Ripple controls less than 4% of the validators on the #XRPL?

Are you aware Ripple recommended a change on the #XRPL and it was initially vetoed by the validators?

Are you aware that it takes 80% Consensus to approve a change or modification on the #XRPL?

Are you aware if 80% consensus is reached by validators the #XRP tokens owned by Ripple can be burned?

Are you aware of the dozens (if not hundreds) of other developers or companies incorporating #XRP and the #XRPL into an application?

Are you aware that Japan 🇯🇵, Singapore 🇸🇬, the United Kingdom 🇬🇧, Switzerland 🇨🇭, the UAE 🇦🇪, and others have declared #XRP a non-security token?

Are you aware that the SEC suddenly claimed #XRP is a security after allowing it to trade for 7 1/2 years in the U.S.?

Are you aware that #XRP was the first regulated cryptocurrency in the U.S. when #FinCEN and the #DOJ classified it a “convertible virtual currency” in 2015 and forced Ripple to comply with the banking laws of the U.S. - not the securities laws?

Are you aware of the non-investment acquisition and use of #XRP by thousands of #XRPHolders, which removes the token out of an Howey analysis?

Are you aware that people use #XRP as a substitute for fiat currency?

Aware people are paid in #XRP?

Aware of #XRP debit cards?

Aware that #XRPHolders derive a direct financial benefit from the token itself when they collateralize their #XRP for fiat loans - or “stake” #XRP for interest payments from entities or platforms independent of Ripple - which results in a resounding no Howie wowie?

Aware that former CFTC Chiarman @giancarloMKTS co-authored an analysis concluding #XRP is NOT a security? 👇👇

coindesk.com/markets/2020/0…

Finally, are you aware of the massive conflicts of interests and gross appearances of impropriety regarding the circumstances surrounding how the lawsuit against Ripple and #XRP was filed? See 👇

https://twitter.com/johnedeaton1/status/1447400529534066692

Before you read my 🧵 👆 (if you do), you should be aware that former SEC Chairman Joseph Grundfest authored a letter pleading with the SEC and Chairman Clayton not to file the lawsuit, considering no fraud was alleged, and no exigency existed (it traded 7 1/2 years).

Grundfest himself questioned the motive behind the lawsuit stating is called into question the SEC’s discretion. He also observed the “mass exodus” of senior people leaving the SEC whom supported bringing the case. It was filed as they were all walking out the SEC’s 🚪 forever.

But don’t take my word for it, read the Grundfest Letter for yourself. 👇

crypto-law.us/wp-content/upl…

Grundfest’s concerns over motive was appropriate. We have learned that Hinman and Clayton likely violated conflict laws. In fact, Hinman was warned by the SEC Ethics office that he could be in violation of criminal conflict laws. He ignored the SEC’s ethics warnings. 👇

https://twitter.com/EMPOWR_us/status/1524381622132428802

Andy, I ask these questions respectfully b/c, as you know, a lot is at stake for millions of retail investors, users and holders of #XRP and other digital assets. The SEC violated its own guidance and 76 years of legal precedent by arguing #XRP, the token itself, is a security.

As you know, any commodity or asset can be packaged, marketed, offered and sold as an investment contract aka a security. So why did they file this case?

If you do a follow-up piece to your article, you will learn why. I’d be happy to provide you with the objective evidence.