Thread by @JohnEDeaton1

READ THIS 🧵 AND I CHALLENGE ANYONE TO TRY AND DEFEND THE ACTIONS AND CONDUCT OF THE SEC.

“The same reasoning applies to digital assets. The digital asset itself is simply code. But the way it is sold – as part of an investment; to non-users; by promoters to develop the enterprise – can be, and, in that context, most often is, a security.”

- Bill Hinman, 06/14/2018

Notice that the asset is more a security if it is “sold as part of an investment - to non-users - by promoters.”

Clearly, #LBC users w/in the @LBRYcom Blockchain who didn’t purchase the tokens from LBRY or its executives DO NOT FIT with what Hinman articulated.

Thousands of #XRPHolders acquired #XRP to establish a TrustLine w/the #XRPLedger to transfer value; thousands got paid their salaries in #XRP through BitPay and other vendors; thousands utilize #XRP as a substitute for fiat; thousands of vendors accept payment in #XRP (eg Time).

According to the SEC’s 2019 Framework for Digital Assets, a crypto is unlikely to satisfy Howey if:

“it can immediately be used to make payments in a wide variety of contexts, or acts as a substitute for real (or fiat) currency.”

In sum, in 2019 the SEC described #XRP to a T

Now also consider that FIVE YEARS EARLIER, in 2014 the @USGAO described ##XRP as a “virtual currency utilized in a decentralized payment system called @Ripple.”

Also consider, in 2015, FinCEN & the DOJ settled w/Ripple classifying #XRP as convertible virtual currency.”

Consider that the 2015
settlement forced Ripple to comply w/Banking laws not securities laws and forced Ripple to hire an independent 3rd party auditor APPROVED BY
FINCEN & DOJ to provide the Government w/
annual audits of all XRP sales for 5 YEARS and this info was shared w/SEC.

Also consider that two
years before the 2015
FinCEN settlement, in
2013, @chrislarsensf
CEO of Ripple, gave a
- presentation to
@USTreasury, @CFTC,
@federalreserve AND
THE @SECGov wherein
he demonstrated the
utility of #XRP.

Also consider that in
addition to the 2015
FinCEN declaration that #XRP was a convertible
virtual currency the
@CFTC stated that virtual currencies similar to #Bitcoin are properly
classified as
commodities.

Also Consider that in
2019 the FSOC annual
report signed by the most important financial leaders in the United States 🇺🇸
highlighted the
following virtual
currencies only
- as growing in market share: #BTC , #ETH, #XRP, and #LTC.

Consider also in January 2019 the SEC was informed by @coinbase and @brian_armstrong
that even if #XRP was a security early on (like #ETH) - today's #XRP is NOT a security and
unless the SEC objected or determined otherwise,
Coinbase was listing
#XRP and did list it in
Feb. 2019.

Now consider 6 months after Coinbase met with
the SEC about listing -
#XRP, @MoneyGram filed a disclosure with the SEC informing the SEC that Ripple was going to be transferring #XRP to
MoneyGram who would then utilize #XRP in its cross border payments
business.

Also Consider that the
SEC knew that
MoneyGram was selling #XRP on exchanges like
Coinbase to the general public AND THE SEC DID
NOTHING.

Consider SEC
enforcement lawyers
wrote a 2018 memo 📝 analyzing XRP and did NOT conclude it was a security.

Consider that SEC staff were allowed to own/trade XRP until Apr. 2019. The info above (and there is
much more) is part of the public record. On this info alone - even if you hate Ripple - you realize how screwed up and all over the place the SEC's
approach to crypto has been.

What I've discussed
above is public. It doesn’t take into consideration
the non-public
information. Now wait
until we see the Hinman emails and drafts of the speech. According to
@bgarlinghouse and
@s_alderoty when we
read it, it will shock us. 👇

https://twitter.com/bgarlinghouse/status/1583231464195338241

Back to LBRY and #LBC. The SEC concedes that
the majority of #LBC
token holders are USERS - the very thing Hinman said that didn't apply to
securities laws. Yet, the SEC refuses to
distinguish those users and exempt them from the application of those
securities laws.

The January 30 LBRY
hearing is one of the most important events in crypto. Btw, When the transcript of the
November 21, 2022 LBRY hearing is made public, the on the record statements made by @jeremykauffman to the Judge need to be sent to every Senator and Congressman.

BELOW
IS A PERFECT
SUMMARY OF THE
CURRENT REGULATORY
STATUS IN THE UNITED STATES 🇺🇸 FOR ENTREPRENEURS
INVOLVED IN
BLOCKCHAIN
TECHNOLOGIES.

At the November 21,
2022 hearing - AFTER the SEC won the case
@jeremykauffman pled with the Court and here is a summary of what he said:

@LBRYcom has been
going back and forth with the SEC for five years. Throughout that entire period, we have begged them, we've said, we will do anything, make any
changes like there are
other currencies like
Ethereum and bitcoin
that have this non-
securities designation.

@jeremykauffman
explained how he offered years ago, to destroy the entire premine. He said
he offered years ago.
he would fold the entire company an give every dollar in the bank accounts. He said: All we've ever wanted was to
achieve the same legal
status of #BTC and
#ETH.

He said:

I just want to know what the
rules are. Tens of thousands of other companies just
want to know the rules. It's okay if we lose. What I would like to come out of this is at least some
knowledge of what the
rules are.

He also said:

There are so many smart people who want to be building and working in
this field. Everyone in my company, whether we work at LBRY or not, wants to keep doing this work. And I thought for sure that by the end of
this we would at least
know what the rules are.

He expressed to the
judge that still to this day no one does. After all these years no one knows the rules on how to build a tecnnology w/a token
and comply w/U.S.
securities laws.

@jeremykauffman said: I honestly don't care about arguing the penalties. I mean, the SEC has won.

He then said:

LBRY is almost certainly dead. The SEC's objective of bankrupting us through the process,
which they threatened
privately three years ago, they succeeded.

Also in the hearing,
@jeremykauffman went on to plead for clarity for the users of the platform
and for clarity regarding secondary market transactions.

We have a hearing on
January 30 on the matter.
@jeremykauffman
@naomibrockwell and
#ICAN deserve credit for fighting back.