🚨SCOOP: The
@SECGov
is holding meetings today with the exchanges (
@Nasdaq
,
@CBOE
,
@NYSE
) to finalize comments on the 19b-4s submitted by the $BTC Spot ETF issuers.
🚨BREAKING: The
@SECGov
’s case against Ripple’s
@bgarlinghouse
and
@chrislarsensf
has been DISMISSED after both parties agreed to the dismissal. This means there will be no trial in April of next year.
Here it is. The piece we’ve been working on for 2 months and my very first investigative report. As
@CGasparino
has mentioned, we’ve reported the facts fairly and to the best of our ability and made a conscious effort to give everyone mentioned a voice.
🚨SCOOP: Turns out even staff at the
@SECGov
aren’t confident they will win the case against
@Ripple
. A source close to the SEC tells me
@HesterPeirce
has expressed privately she thinks the SEC will not get the outcome it’s looking for.
🚨NEW: Ripple's General Counsel
@s_alderoty
statement to FOX Business:
“Once released, these documents will show that in 2012 Ripple received a legal analysis that XRP was not an investment contract. The fact that it took the SEC eight years to suggest they disagreed with that
🚨NEW: All Republicans on the House Financial Services Committee today sent a letter to the
@SECGov
demanding it rescind its proposed rulemaking regarding the definition of “exchange,” saying it exceeds the agency’s statutory authority. 👇🏼
🚨BREAKING SCOOP: I have received a copy of Bill Hinman's public calendar covering his entire tenure while at the
@SECGov
. It's extensive, 189 pages worth, of which I am still combing through but here are some standouts:
🚨BREAKING: Judge Torres says
@Ripple
’s Programmatic Sales, the Other Distributions, and Larsen's and Garlinghouse's sales of
#XRP
do NOT constitute investment contracts. Documents and details to come.
“This is a big blow to the SEC and a huge win for the XRP community now that we finally have a seat at the table”
@JohnEDeaton1
tells me in response to a SDNY judge granting him permission to intervene in the Ripple vs. SEC lawsuit on behalf of more than 23,000
#XRP
investors.
🚨BREAKING: Attorney
@JohnEDeaton1
has filed a motion letter asking the judge in the
@SECGov
vs.
@Ripple
case to let him write a brief on behalf of the 67,300 XRP holders who have been hurt by the lawsuit. The move comes following recent testimony from
🚨NEW development in the
@Ripple
vs.
@SECGov
case:
"Accordingly, the SEC’s motion to strike Ripple’s fair notice affirmative defense is DENIED" - Judge Analisa Torres
🚨SCOOP: Patrick Doody, the independent expert the
@SECGov
retained to analyze the perspective of a “reasonable” purchaser of XRP is currently employed by a private consulting firm that won a $4.1M government contract in 2018. The contract was funded by…the SEC.
🚨NEW: BlackRock CEO Larry Fink on the
@Cointelegraph
report and
#crypto
:
“I was busy all day, I only heard it an hour ago.”
“It’s an example of the pent up interest in crypto.”
“We’re hearing from clients around the world about the need for crypto.”
“Crypto will play the…
🚨BREAKING: “XRP, as a digital token, is not in and of itself a "contract, transaction[,] or scheme" that embodies the Howey requirements of an investment contract.” - Judge Torres
"I was told by the banks that if I did not agree to settle with the
@SECGov
they would cease to provide working capital and Tesla would go bankrupt immediately. So I was forced to concede to the SEC unlawfully. I was forced to admit that I lied to save Tesla's life." -
@elonmusk
🚨NEW: I asked
@JohnEDeaton1
what his initial reaction was to Judge Torres’s ruling. He told me:
“She made clear that her decision was about
#XRP
in this case. In sum, she made it even clearer that, excluding Bitcoin, XRP is the only digital asset with legal clarity.”
Statement from Ripple GC
@s_alderoty
on today’s ruling on the
#Hinman
emails:
“We’re pleased by the sixth - and hopefully final decision - from the Court to produce these documents, which grants
@Ripple
access to important documents that the SEC has continued to withhold.
🚨SCOOP:
@GaryGensler
is embarking on a "midnight massacre" in an attempt to bring all of
#crypto
under his control. In the coming weeks, the
@SECGov
,
@NYDFS
and the
@USOCC
will be bringing a myriad of enforcement actions against exchanges, banks
Coinbase will re-enable trading for XRP (XRP) on the XRP network. Do not send this asset over other networks or your funds may be lost. Transfers for this asset remain available on
@Coinbase
&
@CoinbaseExch
in the regions where trading is supported.
🚨NEW: Following a quarterly rebalance,
@Grayscale
has added $XRP to its Digital Large Cap Fund which seeks to provide investors with exposure to large-cap coverage of the digital asset market.
🚨BREAKING: Statement from
@Ripple
General Counsel
@s_alderoty
to
@FoxBusiness
:
“Today’s order confirms that there is a serious question as to whether the SEC ever provided Ripple with fair notice that its distributions of XRP - since 2013 - would ever be prohibited under the
Was trying for an early night but after reading the latest SEC motion my head is 🤯. So,
@SECGov
still hasn’t taken an official position on
#Ether
but SEC staff did in fact use Hinman’s speech to “provide public guidance” on sales of Ether…but only on behalf of Corp Fin?
What?
Gensler: “Ethereum…I believe there’s a strong legal case it was a security.”
We’ll be reaching out to the
@SECGov
to get a comment on this.
@CGasparino
🚨NEW: A Utah judge has found the
@SECGov
engaged in bad faith conduct against
#crypto
firm
@TheDebtBox
.
The judge has placed sanctions on the SEC for “abuse of judicial process,” ordered them to pay the legal fees of Debt Box and denied its motion to dismiss the charges…
Today
@GaryGensler
told
@FoxBusiness
the
@SECGov
determines what qualifies a security based on laws written by Congress in the 1930’s. How is today’s technology supposed to fit inside a regulatory framework written nearly a century ago? U.S securities laws are due for a makeover.
🚨NEW: I’m being told the crypto exchange
@UpholdInc
is currently down. It’s one of the only exchanges in the U.S. currently offering
#XRP
to retail investors.
I would say people are trying to buy right now.
Statement from
@Ripple
General Counsel
@s_alderoty
to FOX Business on the unsealing of the 2012 memos:
“We are pleased with the Court’s order to release these documents to the public. The documents show a “compelling” legal analysis that Ripple received in 2012 that XRP is
🚨Programming alert: We will have Ripple CEO
@bgarlinghouse
on
@LizClaman
at 3:45PM to discuss the impact of cutting Russia off from SWIFT and the larger conversation surrounding the crypto markets. I'm sure
@CGasparino
will squeeze in a question about the
#SEC
lawsuit as well.
SCOOP: Crypto Mom
@HesterPeirce
tells
@FoxBusiness
she heartily disagrees with
@GaryGensler
’s notion that
#crypto
is destined to fail without government intervention. She also believes it’s not the role of regulators to pick winners and losers in the crypto space.
Judge Torres has now approved three third parties to join the SEC vs. Ripple lawsuit. The
@DigitalChamber
remains neutral but stresses the importance of the court decision for the industry. Two are pro-Ripple/XRP and I’m told at least 3 more
@Ripple
/$XRP advocates will file soon.
🚨NEW: Turns out the
@SECGov
DID hold a vote on the $BTC Spot ETFs.
Here’s the voting breakdown:
Gensler: Approved
Peirce: Approved
Uyeda: Approved
Crenshaw: Not Approved
Lizárraga: Not Approved
"We don't believe XRP is a security, so we're using it as a currency." -
@linqtoinc
Linqto, which offers retail investors a chance to invest in private tech companies, also gives them the opportunity to pay for their investments using $XRP and other cryptos.
@linqtoinc
says they
Update on our efforts to reach out to
@GaryGensler
and the
@SECGov
: A press spokesperson was responsive at first but when we sent them a draft of our
#RipplevsSEC
opus for comment, they went radio silent. Have sent several follow-up emails since last week and haven’t heard back.
🚨NEW: Judge Sarah Netburn orders both
@Ripple
and the
@SECGov
to agree on 3 mutually convenient dates to schedule a settlement conference, “if they believe it to be productive at this time.”
Also recommends scheduling 6-8 weeks beforehand due to the court’s busy schedule.
🚨NEW re $BTC spot ETFs: Expecting some amended 19b-4 filings today as well as some eleventh hour phone calls concerning comments on S-1s and possible launch dates. The timeline for approvals still looking like next week but will all depend on how fast the
@SECGov
can read…
I’m not going to live tweet the entire
@SECGov
/
@coinbase
hearing but Judge Failla is on fire right out of the gate.
She says to the
@SECGov
lead lawyer, and I paraphrase: The “DeFi people” gave a “really fine” amicus brief explaining what staking is and what the wallet is used…
“To date, the SEC has failed to comply with six of the eight categories of documents in
@EMPOWR_us
FOIA request.”
Consistent with
@JohnEDeaton1
attempts to get similar information from
@SECGov
. They haven’t answered him and they haven’t answered me and
@CGasparino
.
A class action lawsuit has been filed against former
@SECGov
Chairman Jay Clayton and his former Director of Corporation Finance, Bill Hinman, for "tortious interference in all XRPL Network Users' valid business expectancy in the XRPL Network".
Calls out to both.
On April 11, 2022, a class action lawsuit was filed against Mssrs. Clayton and Hinman for tortious interference in ALL XRPL Network Users' valid business expectancy in the XRPL Network. The Lead Plaintiff and my client, Shannon O'Leary, decided to take a stand. 13/20
We can confirm that the account
@SECGov
was compromised and we have completed a preliminary investigation. Based on our investigation, the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number…
What a coincidink!
Just finished writing an article about the
@Ripple
vs.
@SECGov
case on the train to DC.
I walk off the platform at Union Station to see…
Regarding
@SECGov
vs.
@Ripple
, I think I'm pretty much up to speed now. My biggest takeaways:
1. The whole commission except Clayton was left off the 68 drafts of the Hinman speech.
@CGasparino
and I reported that Clayton actually gave input on the speech before delivery.
🚨BREAKING: In its opposition to the
@SECGov
’s motion for summary judgment,
@Ripple
lawyers made use of affidavits signed by $XRP users (or “purchasers” as they refer to them in the document) explaining how they did not expect profits from Ripple’s efforts when they made
Looks like a win for $XRP holders here.
@JohnEDeaton1
is allowed to stay on the case and retain amici status. He’ll also be allowed to raise concerns about the
@SECGov
’s expert when filing his summary judgment brief.
#XRPCommunity
#SECGov
v.
#Ripple
#XRP
BREAKING: Judge Torres denies SEC's Motion to Revoke amici status and bar
@JohnEDeaton1
from further proceedings. Amici can't participate in expert challenge now but may file application to brief concerns with SEC's expert at summary judgment
🚨SCOOP:
@GaryGensler
apparently has multiple SEC email accounts that he uses.
Why would he need to do this? I’ve reached out to the
@SECGov
for comment.
Latest from Federal Reserve Chair Jerome Powell on
#crypto
:
“Existing regulations were not built with digital currencies in mind. There will have to be new rules, laws and frameworks to deal with digital currencies.”
The
@SECGov
’s motion for leave to file an interlocutory appeal in the
@Ripple
case has been DENIED. 👇🏼
“…the SEC's motion for certification of interlocutory appeal is DENIED, and the SEC's request for a stay is DENIED as moot.”
Full doc here:
I managed to catch Jay Clayton as he was rushing out the door after his virtual interview with Gary Gensler. I asked him what he thought of
@CGasparino
and my opus. He said “It was (thought for a second)…long. You did a lot of research”.
🚨BREAKING re
@Ripple
/
@SECGov
:
ORDER: granting in part and denying in part 621 Motion for Summary Judgment. For the foregoing reasons, the SEC's motion for summary judgment is GRANTED as to the Institutional Sales, and otherwise DENIED. Defendants" motion for summary judgment…
My biggest take away from these
#HinmanEmails
is that it seems
@SECGov
officials who weighed in on the speech believed the goal was to provide market guidance and tried to write it in a way that would convey that. Thus, in the
@Ripple
case, the SEC lawyers’ argument that the…
I always make a point of reaching out to both the
@SECGov
and
@Ripple
for comment when any news breaks in the case. In response to my email from Friday, I received a "we decline to comment" from the SEC on the decision to deny their motion to strike Ripple's fair notice defense.
Rep
@BradSherman
seemed very confident that $XRP is a security under the Howey Test despite calling the Howey Test "relatively ancient" in his opening remarks.
🚨NEW: From an industry insider in response to the judge’s
@binance
/
@SECGov
TRO ruling:
“Binance put out a restrained public response to the TRO ruling out of respect for the judge, but they are celebrating what is a crushing defeat for the SEC.” 👇🏼
🚨NEW: Billionaires
@elonmusk
and
@mcuban
are teaming up to stand up to the
@SECGov
. In a joint amicus brief filed today, the pair voiced their support for the overhaul of current agency administrative proceedings that allow for the use of in-house judges to preside over cases…
🚨NEW: House Financial Services Chairman
@PatrickMcHenry
has just announced a full committee hearing (
@FinancialCmte
/
@FSCDems
) scheduled for next Tuesday June 13th entitled: "The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem".
🚨BREAKING: Governor
@RonDeSantis
on how he would treat
#crypto
if he becomes president:
“People in Washington don’t like it because they don’t control it. And they’re central planners and they want to have control over society, so Bitcoin represents a threat to them and so…
Transcript from a December 2018
@SECGov
oversight hearing where Jay Clayton, testifying under oath, cites Bill Hinman's speech as a reference for market participants to evaluate whether a digital asset is a security.
🚨NEW: According to the Federal Election Commission,
@DeatonforSenate
outraised
@SenWarren
in the first quarter with Deaton raising total revenues of $1.36M and Warren $1.1M.
According to his campaign, Deaton has received donations from prominent figures in the
#crypto
industry…
🚨BREAKING: FOUR amicus brief requests have been filed on behalf of
@Ripple
today.
The
@crypto_council
which describes itself as an alliance of industry leaders dedicated to unlocking the promise of crypto has just filed within the last hour and so has VC firm
@ValhilCapital
.
Takeaways:
1. The
@SECGov
lawyers in the
@LBRYcom
case conceded OTR that secondary market sales of $LBC tokens do not constitute a security.
2. No one fights harder for the crypto community than
@JohnEDeaton1
. Imagine how easy the SEC would have it if it weren’t for him?
🚨NEW: “The abuse of the revolving door is appalling” - Elizabeth Warren, 12/18/2023 🤔
Warren has been sounding off about the so-called revolving door in
#crypto
, but records shows her own office has served as a revolving door for the banks.
Check out this research…
The
@SECGov
twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
not a security. The fact that Ripple sought such advice in 2012 should be applauded. That fact that it took the SEC eight years to suggest they disagreed with that analysis - while XRP traded in a massive global market - is baffling.”
“When WE look at Bitcoin and when WE look at Ether WE’RE comfortable viewing these as items that don’t have to be regulated as securities.”
Who is WE if not the
@SECGov
?
On the latest ruling in the SEC vs. Ripple case:
@JohnEDeaton1
gave me his biggest takeaways and here's what I find the most interesting:
On June 13th 2018, the day before the Hinman speech, the SEC legal team reviewed whether
#XRP
was a security in a legal memo and did not
From the latest SEC filing:
“The Speech was not binding SEC policy--that is, a pronouncement of the Commission itself, the Commissioners appointed by the President with the Senate’s advice and consent.”
The head of the Commission:
🚨NEW:
@BlackRock
CEO Larry Fink to
@FoxBusiness
’s
@CGasparino
on
#Bitcoin
:
⚜️If you’re fearful of your government, or worrying your government is devaluing the currency, then you could see this as a great potential long-term store of value. It’s like digital gold.
⚜️It is a…
According to
@JohnEDeaton1
, government employees are prohibited from participating personally in matters where they have financial interest. According to these emails, it seems Hinman met with members of his old firm anyway despite an
@SECGov
ethics staffer warning
(3/5) The staffer replies with a more explicit and pointed warning he has "a bar under the criminal financial code" that NO contact w/ Simpson Thacher - "even calls with them" - is legally allowed, adding there is also a "serious optics issue".
🚨NEW: Crypto payments firm and $USDC issuer
@circle
has filed for an initial public offering (IPO).
Circle was one of a couple of big crypto names expected to file to go public this year. The other is
@Ripple
.
🚨BREAKING:
@DOJCrimDiv
will hold a press conference at 12PM to announce a “major international cryptocurrency enforcement action.” The
@USTreasury
will also announce an action. Live stream link on the DOJ website and more info below.
I have a feeling the
@SECGov
conflicts of interest that
@CGasparino
and I have been reporting (and that no other media outlet would touch) will start to matter a whole lot more now.
🚨SO, what are next steps in the
@Ripple
case?
Now that the
@SECGov
has dropped the charges against
@bgarlinghouse
and
@chrislarsensf
, expect to see some more litigation in the penalty phase between the two parties in regards to the appropriate penalty for Ripple‘s $700M+ of…
🚨BREAKING: The
@SECGov
’s case against Ripple’s
@bgarlinghouse
and
@chrislarsensf
has been DISMISSED after both parties agreed to the dismissal. This means there will be no trial in April of next year.
Someone sitting behind
@GaryGensler
flashed the Stand With Crypto NFT on a phone.
The shield is described as a symbol of unity for the crypto community seeking sensible crypto policy.
🚨NEW:
@Vanguard_Group
, the world’s second largest asset manager behind
@BlackRock
, is reportedly blocking its customers from buying into the new $BTC Spot ETFs, saying the products “don’t fit with Vanguard’s investment philosophy.”
Now we’ll start to see how institutional…
@SplitCapital
Wow. It is worse than I thought. I called and the answer I received was "Currently we aren't allowing those to be purchased as it doesn't fit with Vanguard's investment philosophy."
Me: "Ok but you let me buy GBTC in the past."
Him: "Yes I believe you can only sell that now."
🚨NEW: District Judge Torres has referred the
@Ripple
case to Magistrate Judge Netburn for General Pretrial (includes scheduling, discovery, non-dispositive pre-trial motions and settlement). 👇🏼
It seems Judge Torres isn't giving the SEC any free lunches here.
Judge Analisa Torres GRANTS Leave to I-Remit and
@TapJets
to File Amicus Briefs in
@SECGov
v.
@Ripple
. Briefs are due Friday October 14th.