I have a question for @BrianBrooksUS. As OCC, you stated that there are too many agencies in finance and banking in the U.S. In an interview, you openly questioned: “Do we think it’s best for the Government to build a CBDC or utilize the private sector, which is already built?”
I believe, when you said that, you were referencing, at least in part, #XRP and the #XRPLedger. I say that b/c you stated the technology to build a CBDC was “already built”, but the only issue was with a lack of regulatory clarity. You definitely weren’t referencing #BTC or #ETH.
It wasn’t #BTC or #ETH b/c when you made this statement they enjoyed regulatory clarity by being declared non-securities by the SEC’s leadership plus those two digital assets weren’t associated with payments.
Judge Netburn recognized the SEC’s over-broad and far-reaching theory that all XRP are securities when she recognized, according to the SEC’s own argument, that every person in the world selling #XRP is committing a Section 5 violation.
Read the SEC’s response back to her.👇
The SEC attorney informed the Judge that her understanding wasn’t correct. It was this statement by the SEC attorney that helped fuel the relist #XRP campaign.
But read @bgarlinghouse’s attorney’s response regarding this same issue.👇
“Contrary to what Mr. Tenreiro said, not just Ripple, not just Ripple’s affiliates, but any retail holder or any party IF THERE IS ANY INTENT TO DISTRIBUTE the security further. So it is not correct to say, that there is no potential liability throughout the XRP ecosystem.”
The @SECGov’s argument that all XRP, even XRP traded in the secondary market, are unregistered securities, is simply unconscionable. #XRPHolders’ brief will include statements and admissions made by the SEC itself supporting #XRPHolders’ position.
For example, take the infamous Hinman Speech itself. Read what’s said almost immediately:
“To start, we should frame the question differently and focus not on the digital asset itself, but on the circumstances surrounding the digital asset and the manner in which it is sold.”
To start, he says don’t focus on the Token itself. He goes further:
“Returning to the ICOs I am seeing, strictly speaking, the token – or coin or whatever the digital information packet is called – all by itself is not a security, just as the orange groves in Howey were not.”
This meeting took place during the very height of the ICO prosecutions by the SEC.
We know for a fact that Ether held the world’s first ICO in 2014 - 3 years prior to the first Hinman meeting. We know that there were 3-4 more meetings before the Hinman Speech, including on June 8, 2018. We know Ether investors helped write ✍️ the speech (we have the videos).
We know on June 8, 2018, AFTER meeting the SEC, Joe Lubin PREDICTED that some projects were going to receive bad news from the SEC.
We know @Ripple was one of those “projects.” But a year before the SEC sued Ripple, it filed its most successful ICO enforcement action.
The SEC, under your predecessor, didn’t limit its allegations to only include sales of XRP made by Ripple. Incredibly, the SEC lawyers are alleging the token itself is a security per se. This argument is akin to claiming the oranges were the securities in the Howey case.
With all due respect, it’s an absurd claim and its caused significant damage to retail holders of XRP - many whom utilize the token as a transfer/bridge asset - not as an investment. Over one-half of all XRP Holders purchased XRP for the first time unaware of the company Ripple.
I think it’s time to Connect to Congress again. The crypto industry is floating many proposals for clarifying the federal rules, but U.S. digital asset holders have a more fundamental question for our lawmakers. Let’s put them on the spot. (1/5)
The SEC is practicing regulation by enforcement, setting policy with lawsuits and picking winners and losers rather than leveling the playing field. It’s unclear for investors and unfair to everyone.
To do this, the SEC is relying on a 1940s court case to set crypto policy. This is like using horse & buggy rules to regulate jet planes. It makes no sense, and it needs a solution.
Despite @CGasparino being unbiased and giving Clayton the benefit of the doubt, Clayton has refused to speak to Gasparino and @EleanorTerrett regarding his decision to file the most significant enforcement action in recent history 🆚 @Ripple & #XRP - as he walked out the🚪
Instead, Clayton chose to go on air with @andrewrsorkin@BeckyQuick and @JoeSquawk. Andrew offered up a 🥎 question and asked Clayton if he wanted to address the serious conflicts of interests and gross appearances of impropriety that have been alleged against him.
Clayton stated he would not comment on the Ripple case. Regarding the conflicts of interest related to his current employers, Clayton incredibly said:
“I did not know these companies while I was in the government. I was introduced to them after I exited.”
MORE PROOF THAT THE SEC CASE 🆚 @Ripple IS DANGEROUS TO ALL CRYPTO: 👇
The above language is not John Deaton’s interpretation of the SEC’s Complaint. The above is from Judge Torres herself. She acknowledges that the SEC claims Ripple created the secondary market for #XRP - including all sales - whether between individuals or sold on exchanges.
Judge Torres recognizes the SEC’s claim that b/c Ripple undertook efforts to create a secondary market for XRP, that, therefore, ALL #XRPHolders must have entered into a common enterprise with Ripple - regardless of whether they acquired #XRP directly from Ripple.
THE SEC CLAIMS THAT NO SIGNIFICANT NON-INVESTMENT USE EXISTS FOR #XRP.
What about the thousands of #XRPHolders who acquire the minimal amount of XRP to utilize the #XRPL and the DEX to purchase #CSC or other tokens? Or the thousands that utilize it as a bridge / transfer asset?
THE SEC MAKES THE ABSURD CLAIM THAT #XRPHOLDERS ENTERED INTO A COMMON ENTERPRISE NOT ONLY WITH RIPPLE BUT ALSO WITH ALL OTHER #XRPHOLDERS.
For those of you who think I’m making this 💩 up, read for yourself what the SEC alleges: 👇👇👇
I don’t represent @Ripple. I do represent, however, 58K #XRPHolders and calling #XRP a “useless token” is both idiotic and untrue. Having that much animus against #XRP AFTER #Ether was given a regulatory free pass nonetheless proves #XRP was and still is perceived as a threat.
@CGasparino’s tweet below👇 is part of the #Ether free pass timeline. It was Andrew Keys who slipped up and told Gasparino that the Brooklyn Project’s efforts were approved by the SEC. One would assume a free pass would generate more grace and confidence in those who benefited.
Hinman never explained exactly what about Ether’s “decentralized structure” caused sales of Ether to fall outside the U.S. securities laws. Its
3 1/2 years later and market participants and investors still don’t know how to define “sufficient decentralization.”
@Ripple fought hard to get any evidence related to the SEC’s analysis of Ether, #Bitcoin and XRP.
If Ripple can show the #XRPLedger is equal or more decentralized than the Ether Network, Ripple could win based on fair notice.
In the Order granting #XRPHolders amici, the Court takes notice of the absurd allegation that Ripple created the secondary market for XRP AND because exchanges sold the XRP that Ripple sold to them to the public we ALL entered into a common enterprise with Ripple AND each other🤦♂️
Skeptics will argue the Court misunderstands what the SEC is alleging. But the Court is 💯 on 🎯
Below are actual paragraphs from the Complaint. The over-broad far-reaching allegations could be applied to any crypto asset, including #Bitcoin
It’s both absurd and dangerous.⛔️
One River bet $1 billion on #BTC and #Ether in October 2020. Two months later on his last day at the @SECGov, Clayton directs the enforcement action against @Ripple and #XRP. Twelve weeks later, Clayton joins One River.
Clayton’s law firm represented Lubin and #Consensys.
Clayton’s law firm represented Lubin and #Consensys.
Hinman’s law firm was on the Board of the #EtherAlliance and represented clients involved with the #Ethereum Foundation.
Hinman met with Lubin and Consensys prior to his June 14, 2018 #BTC and #Ether are not securities speech.
Lubin was part of the Hinman speech conference.
In October 2020 One River makes a $1 billion bet on #BTC & #Ether.
2 months later on his last day at the SEC Clayton directed the filing of the enforcement action against @Ripple@bgarlinghouse & @chrislarsensf asserting the ridiculous claim that even Today’s #XRP is a security
Attorney Rabbit was at this meeting wherein Brad Garlinghouse informs Clayton that @Ripple was living in “purgatory” because of the lack of clarity regarding whether #XRP is or is not a security. Of course, Clayton never responded back to Garlinghouse that #XRP is a security.
The only thing more ridiculous than the @SECGov claiming today’s #XRP is a security is the @SECGov’s argument that the Hinman speech was only his personal opinion and not meant to be guidance by the #SEC.