John E Deaton Profile picture
Mar 5 6 tweets 2 min read
Technically, it was 12,600 #XRPHolders who joined the motion to intervene (today the putative class is more than 75K).

But think about the motion to intervene:

Thousands of retail digital asset holders asked a Federal Judge to make them actual defendants in a case!
Some people were like wtf is going on with this crazy ass motion to intervene. Many other people, especially lawyers, believed I was crazy for filing such an unusual and unlikely motion. I don’t blame them for thinking that b/c it was an unprecedented move.
Because the only time a motion to intervene in an SEC enforcement action was granted involved a spouse who wanted to protect her 50% interest in the marital assets that were in jeopardy.

I knew the Judge was very unlikely to name individual #XRPHolders or a class as defendants.
But the symbolism of thousands of holders asking for such an extraordinary thing spoke volumes of the public interest in this case. Although she would likely deny the motion to intervene she would likely grant amicus status b/c that was the result of other motions to intervene.
The point is the crypto industry must accept that the SEC waged a war 🆚 crypto when it attacked not only how a promoter sells a token but attacked the token itself - calling software code a security per se - no matter the seller or the circumstances surrounding the sale.
We must think out of the 📦 and organize. For example, all companies in active litigation w/the SEC, or about to be, should be meeting, sharing ideas, and developing coordinated strategies. Its a war.

I’d be happy to help. Maybe I can replace @elonmusk as the SEC’s most hated.

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More from @JohnEDeaton1

Mar 4
I defend secondary market sales of #XRP as well as other tokens sold in the secondary market (ie #LBC), not @Ripple or @LBRYcom.

When I sued the SEC, people immediately called me the #XRP Attorney even though I disclosed up front that I owned more in #BTC & #ETH than #XRP.
I was shocked that more people didn’t read the Complaint 🆚 Ripple the way I did - b/c it attacked the token itself and didn’t focus on the circumstances surrounding the way Ripple offered and sold #XRP.

Many allegations about #XRP applied to all other tokens.

For example:
“The nature of XRP itself made it the common thread among Ripple, its management, and all other XRP holders.”

The “nature of XRP itself”?

Wtf does that even mean?

The SEC is asserting that by simply owning a token you are in a common enterprise with ALL other token holders!
Read 18 tweets
Mar 3
A lot of people are speculating on why @Ripple would file this now. Some people are saying its b/c Ripple knows it will lose or b/c they’re less confident. It’s a very simple reason why it was filed. The decision is from the Supreme Court and it was handed down only 4 days ago.
Judge Torres could possibly file her decision at any moment (or it could be 2 months longer). The point is: this isn’t a decision from a federal district court or even an appellate circuit court. This is a U.S. Supreme Court decision decided on February 28, 2023 - 4 days ago.
The Supreme Court’s decision is relevant regarding one of Ripple’s Affirmative Defenses: The Lack of Fair Notice violates the Due Process clause of the U.S. Constitution.

People overthink and try to look for reasons other than the obvious one.
Read 7 tweets
Feb 20
I always like to back up anything I say with facts - explaining why I believe the way I do. In the next tweet 👇 of this 🧵, I’m going to quote the @SECGov’s summary judgment argument 🆚 @Ripple. The following quote perfectly summarizes the SEC’s theory in a nutshell:
“Defendants do not dispute that they offered and sold XRP in exchange for ‘money’, which suffices to establish the ‘investment of money’ aspect of the Howey test. Defendants’ statements and efforts as to XRP...establish the other aspects of the Howey test as a matter of law.”
Now that’s an interesting way to approach the Howey Test. I’ve said in the past that the SEC is attempting to apply the functional equivalent of the “BUT FOR” test to securities laws.
Read 13 tweets
Feb 3
TO BE CLEAR:

I have not asked anybody for any money or for any contribution of any kind whatsoever associated with my efforts in the Ripple or LBRY cases. I’ve turned many people down who offered to contribute for my time and my expenses.
Not only have I never been paid a dime but I have spent a considerable amount of my own funds fighting the SEC’s overreach such as hiring local attorneys to file the appropriate paper work for my appearances, etc. I am doing this because I can and b/c its the right thing to do.
TO BE CLEAR: I HAVE ZERO EXPECTATION TO BE PAID!ALTHOUGH I TRULY APPRECIATE PEOPLE’S GRATITUDE FOR MY EFFORTS, I WILL CONTINUE TO TURN DOWN ANY AND ALL OFFERS REGARDING ANY FORM OF PAYMENT FROM ANYONE REGARDING MY EFFORTS ASSOCIATED WITH XRP or LBC.
Read 6 tweets
Feb 3
It is mind boggling and absolutely infuriating how lawyers and staff at the SEC and others keep talking about the tokens themselves as being securities.

#Bitcoin is a digital asset that was once packaged, marketed, offered and sold as an investment contract aka a security.
Just b/c #BTC was utilized by someone as a security, didn’t turn #BTC into a security.

Beavers 🦫 were once offered and sold as an investment contract. 🦫s remained 🦫s, not securities.

Condos and Chinchillas were sold as investment contracts. They didn’t become securities.
If @Ripple offered or sold #XRP as an investment contract at some point during its history - or even if it does today - it does not make #XRP a security. #XRP remains digital code.

The Judge in @LBRYcom ruled LBRY sold #LBC as an investment contract when it made DIRECT sales.
Read 19 tweets
Jan 29
During this 🧵, I share the interview I did w/@Jay_SpendDBits well over a year ago when I was researching the #XRPLedger and independent developers who have no connection to @Ripple or its executives.

@Spend_The_Bits is a PERFECT example of what’s wrong w/the SEC lawsuit.
In fact, there have been 15 Amicus Briefs filed in the @Ripple case and if Judge Torres were to inform me that she was only going to read one Amicus Brief but was going to allow me to pick the one she reads, I would tell her to carefully read the @Spend_The_Bits Amicus Brief.
The @Spend_The_Bits Brief may be the best at demonstrating how flawed the SEC’s all-encompassing #XRP theory is.

Like most in Crypto, Jay read the #Bitcoin White Paper and bought #BTC
He knew #Bitcoin was going to be part of the future and decided to develop a payments app.
Read 25 tweets

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