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John E Deaton (209K Followers Beware Imposters) Profile picture
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Jul 29 • 4 tweets • 5 min read
The best example of the absolute absurdity of the @SECGov’s claim that #XRP is a security is highlighted in the video below 👇

#Bitcoin Maxis say ⚡️ is the only way to spend #BTC quickly. Not True! What blockchain technology was DESIGNED specifically for payments: The #XRPLedger
@Spend_The_Bits utilizes the #XRPL as a Layer 2 solution to solve how slow #BTC is. Utilizing the #XRPL and you spend your #BTC by utilizing a fraction of penny: .00005XRP.

The SEC concedes #BTC is not a security, but it claims the .00005XRP utilized to spend the #BTC is. 🤦
@Spend_The_Bits CEO @Jay_SpendDBits developed this app WITHOUT @Ripple. In fact, Ripple and @bgarlinghouse were unaware of this application. I highlighted this example along with others when I filed my motion to intervene. That’s the beauty of the technology.
It’s an open permission-less distributed ledger technology. Tragically, SpendTheBits hasn’t attempted to offer the app in the United States 🇺🇸 because of the SEC’s claims.

I’m a Crypto Maximalist. I love #BTC & #XRP joined together.

Satoshi’s Vision Fulfilled!

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More from @JohnEDeaton1

John E Deaton (209K Followers Beware Imposters) Profile picture
Jul 30
THE WILLIAM HINMAN CONFLICT OF INTEREST - How Bad was it? A 🧵
For over a year, I wouldn’t accuse Hinman of violating the law. I only maintained that he may have and that the appearance of impropriety deserved an investigation. Since then however we’ve learned that @EMPOWR_us caught the @SECGov in a lie, trying to cover up the issue.
The SEC claimed there were no emails or documents responsive to @EMPOWR_us’s FOIA Request.

Empower sued the SEC in federal court and discovered that there are in fact emails related to a conflict and the SEC was forced to turn some of those emails over.
Read 25 tweets
John E Deaton (209K Followers Beware Imposters) Profile picture
Jul 25
THE SEC LAWYER ACTUALLY ARGUED THIS:

In the @LBRYcom Summary Judgment Hearing the SEC lawyer argued that the last prong of Howey - relying on the efforts of others - is satisfied in ANY BLOCKCHAIN TOKEN CASE from the thousands of nodes from around the world.

LET THAT SINK IN
In Howey and securities cases after, the efforts of others factor was tied to the promoter who made promises that you could expect profits because of the promoters efforts and plan. That was the common enterprise you rely on for the profits.

Not any longer according to the SEC.
1) SEC doesn’t require a common enterprise to bring a case.

“The Commission, on the other hand, does not require vertical or horizontal commonality per se, nor does it view a "common enterprise" as a distinct element of the term "investment contract." 

sec.gov/corpfin/framew…
Read 5 tweets
John E Deaton (209K Followers Beware Imposters) Profile picture
Jul 12
On page 24 of its opposition, the SEC attempts to split proverbial legal hairs by conceding #XRP is not a security per se (“this case presents no such question”), while simultaneously arguing all XRP, including XRP traded in today’s “secondary market … represents” a security. 👇
Remarkably, the SEC claims it is not arguing XRP is a security per se, but instead, arguing XRP is a representation of a security.

What does that even mean?

When does an asset transform from being an asset (🥃, an 🍊, 🦫 or #BTC) to also “representing” an investment contract?
The SEC must prove #XRP IS an investment contract. But the SEC unilaterally changed its burden to proving only a “representation” of an investment contract.

The SEC doesn’t get to make up the law in order to satisfy a political desire to regulate a new evolving asset class.
Read 26 tweets
John E Deaton (209K Followers Beware Imposters) Profile picture
Jul 12
AN OPEN LETTER TO @FinancialCmte @FSCDems @GaryGensler @HesterPeirce @SECHerrenLee FSC and SEC Members

I write ✍️ to you on this public platform hoping you will truly understand the damage being inflicted on innocent holders of #XRP. I represent 68,700 of those holders.
We are users, developers, small businesses, content providers and investors in the digital asset #XRP.

In 2015 #XRP became the first regulated cryptocurrency in the United States, when the @DOJCivil & #FinCEN settled w/ @Ripple declaring #XRP a

“convertible virtual currency.”
After #FinCEN declared #XRP a virtual currency, forcing sales to comply w/ U.S. Banking Laws (not securities laws), foreign governments, including the U.K. 🇬🇧, Japan 🇯🇵, Switzerland 🇨🇭, Singapore 🇸🇬, and the UAE 🇦🇪, followed suit - all declaring #XRP - a non-security.
Read 26 tweets
John E Deaton (209K Followers Beware Imposters) Profile picture
Jul 9
I recommend re-reading the Grundfest Letter now that we know so much more. It is very enlightening to re-read the letter now that we have much more context and knowledge about the lawsuit and why and how it was filed. A few more things will jump out at you.
For example, when Grundfest discusses the mass exodus of the senior leadership at the SEC after filing the case he notes:

“The directors of the Divisions of Enforcement, Corporate Finance, and Trading and Markets have all been deeply involved in the decision to [file suit].”
“Deeply involved” says a lot. It means these people were the ones pushing for the lawsuit as they were walking out the SEC’s door forever. Think about that for a minute. Why would these individuals push the most significant non-fraud SEC enforcement action since Howey and leave?
Read 9 tweets
John E Deaton (209K Followers Beware Imposters) Profile picture
Jun 28
A 🧵 about a few Facts and Dates proving the lawsuit 🆚 @Ripple & #XRP was a weapon:

1) In 2103 @chrislarsensf gives a presentation to regulators including the @SECGov,
@federalreserve, #FinCEN, etc, discussing his plan to utilize the #XRPL and how he intends to distribute #XRP;
2) Two years after that meeting, in 2015, FinCEN & DOJ enter into a settlement w/ Ripple declaring #XRP a “convertible virtual currency” and force Ripple to register #XRP sales w/ FinCEN - NOT the SEC - (the SEC is made aware of the deal and its terms pursuant to info sharing);
3) On June 13, 2018 SEC Enforcement Lawyers write ✍️ a legal memo 📝 analyzing #XRP under Howey and these enforcement lawyers DO NOT conclude #XRP is a security and it SO NOT recommend an enforcement action or a cease and desist letter against Ripple;
Read 27 tweets

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