Connect with us

Ripple Vs SEC

Ripple (XRP) Will Not Get Details of XRP BTC and ETH holdings of SEC Employees

Published

on

The Ripple V. the United States Securities and Exchange Commission [SEC] lawsuit is ongoing.  Recently, Ripple filed a motion compelling the SEC to reveal the details of their employees holding XRP and also to have them reveal their BTC and ETH holdings. However, the SEC refused to give the details pointing to the privacy of its employees. And, the SEC requested that the court should deny Ripple’s (defendant’s) motion.

SEC argued that disclosing the trading details of its employees will be “Unjustified Intrusion.”

Pascale Guerrier, trial Attorney at the SEC’s Division of Enforcement, expressed:  “The sensitive data is collected by the SEC’s Office of the Ethics Counsel (“Ethics Counsel”) for purposes of ensuring SEC employees’ compliance with ethical rules intended to prevent conflicts of interest—not to determine whether any particular transaction complies with the securities laws.”

Advertisement

The Ethics Counsel has confirmed that they have not placed XRP, Bitcoin, and Ether in their list of prohibited holdings.  Also, it stated that XRP is on their watch list.  Further, established that pre-clearance by the “Ethics Counsel” does not indicate whether the transaction is in compliance with the securities law.

The SEC pointed to other reasons to establish why it wanted the court to deny Ripple’s request. The SEC stated that even if Ripple were given anonymous documents, the data aggregate would bring down the trust that employees place on the Ethics Counsel. Also, they stated that the task would tax the SEC as nearly 9 years’ worth of material has to be produced.

James K. Filan, the Defense lawyer for Ripple and the former federal prosecutor, stated, “The problem for the SEC is that they are wrong on the facts and wrong on the law.

Advertisement

Community response: It sounds like they got skeletons in their closet.

Judge Netburn clearly stated, the defendant doesn’t have to see the docs; she will review them in-camera. SECgov should stop stalling.

Weird that they spend so much time making the point about privacy when Ripple explicitly suggested aggregate data. Did Pascale not thoroughly read the filing? Or clutching at straws?

Advertisement

The SEC is a serious waste of American taxpayers’ money.  It looks like a lot of talking in circles to me. If you can’t make a concise point for this request, it tells me they’re struggling. Throwing all this out there, hoping something sticks. Pathetic.

Evidence is mounting now pointing to employees inside the SEC are conducting insider trading and picking winners and losers, and having conflicting interests; if they are to be found guilty of any of these, then they should face jail time, not a fine or a slap on the wrist.

Who actually sat down and took the time to type all of this garbage. If the SECGOV or anyone related to the SEC on DEC 22, 2021, had XRP in their wallets, this case is OVER.

Advertisement

Ripple Vs SEC

Inside the Ripple vs. SEC saga: Investigation reveals new details of personal interests at the SEC

Published

on

  • An investigation by FOX Business has revealed new tie-ups in the SEC vs. Ripple case, including Gensler’s huge role before he joined the SEC.
  • Andreessen Horowitz has also been identified as one of the key players protecting Ethereum and nudging the SEC on which way to regulate the space.

Eleven months ago, almost to the day, the U.S Securities and Exchange Commission (SEC) sued Ripple Labs for violating securities regulations with its sale of the XRP token. It also sued Brad Garlinghouse and Chris Larsen, the CEO and Chairman of the firm respectively, for facilitating this violation and benefitting personally from it. Since then, it’s been a lengthy legal battle that doesn’t seem to be ending soon.

But were the charges motivated by personal interests? Are there higher powers that are protecting the other projects, especially Ethereum? Was Ripple identified as the cheap target of the enforcement despite working extensively with the SEC to prove it had abided by the law? FOX Business believes so, and in its latest investigation, it made out links between Gary Gensler, Bill Hinman, Jay Clayton, Joe Lubin, Andreessen Horowitz and other powerful players that span back to over three years ago.

Jay Clayton

The biggest factor in the saga is Clayton, the former SEC head who in his last act filed the lawsuit against Ripple (literally hours before he left office). Clayton had been a Wall Street lawyer who, as a Republican, advocated for a free market. In fact, in his time at the SEC, most of the 65 new rules he passed were towards deregulation.

Advertisement

Prior to his action against Ripple, Clayton had brought 87 actions against cryptocurrency businesses. Most of these were charges of selling unregistered securities, with the two standouts being Telegram and Kik. The former had conducted a $1.7 billion token sale, one of the largest ever and had to return $1.2 billion to investors and shut down.

The investigation unearthed that in January 2018, Clayton had asked Andreessen Horowitz, one of the world’s most renowned venture capital firms, to organize a summit of cryptocurrency leaders. The purpose of the summit was for the leaders to weigh in on regulations and make recommendations to the SEC.

Sources with knowledge of the matter revealed that Ethereum was vastly represented, with several members of the Ethereum Enterprise Alliance in attendance.

Advertisement

One lawyer who attended the summit, Lowell Ness, later detailed that Clayton had told Andreessen to “round up the industry players to essentially lay out a very detailed written, foot-noted memo on what existing law says about utility tokens” and “give a proposal about where to go from here.”

Ripple executives, or their affiliates, were not invited to this summit.

This summit may sound like just another random event. But a year later, one of the lawyers present in this meeting was in a panel discussion in which he took partial credit for the now-very-famous Bill Hinman speech in 2018. This was the speech in which Hinman, who was a top SEC official, said Ether and BTC weren’t securities. He didn’t exempt any other cryptocurrency.

Advertisement

The lawyer, Nancy Wojtas of Cooley LLP, stated in part that “director Hinman’s speech … most of what he says in there came out of the safe harbor as well as the meetings we had with him.”

Was it a coincidence that Hinman exempted Ethereum after holding a summit with top Ethereum advocates?

Gary Gensler

Just as important to the Ripple saga is Gary Gensler, the current SEC head and former CFTC chairman. Sources have revealed that even before joining the SEC, Gensler was just as involved in laying out regulations meant for the cryptocurrency industry.

Advertisement

The first meeting was in March 2018. While all the details about the meeting have not been disclosed yet, sources say Gensler asked Clayton to take an even harsher stance on digital assets.

From the onset, Gensler had made up his mind that Bitcoin was not a security under the Howey test. Ethereum, on the other hand, wasn’t as clear-cut as BTC. Ripple’s XRP for him was an obvious security, even before the case against the company.

He told the New York Times in 2018:

Advertisement

There is a strong case for both of them — but particularly Ripple — that they are noncompliant securities.

Days after the first meeting, Clayton stated in a town hall meeting in Atlanta,  “Most of what I’ve seen in the ICO space is a securities offering. It is raising money for a project where I give you my money, you give me some type of write-back that reflects a return on your project. That’s a securities offering.”

That first meeting isn’t the most controversial one, however. On December 21 last year, Gensler met Clayton once again. On his public schedule, Clayton detailed the sitdowns as “Meeting with Gary Gensler, president-elect Joe Biden’s transition team.”

The most striking thing about this meeting, in particular, was that it was one day before Clayton and the SEC charged Ripple with securities violations.

Advertisement

SEC giving Ethereum and Bitcoin a “hall pass”

Ripple has accused the SEC of bias and picking the winners and losers in the cryptocurrency industry. Garlinghouse, the CEO, has openly accused Clayton, and now Gensler, of playing favorites and giving Bitcoin and Ether a hall pass.

And it’s not hard to see why the California company feels it’s being targeted, especially vis-a-vis Ethereum. The Ethereum founders held an ICO as well and Vitalik has been quite involved in developing the platform up to date, including championing for Ethereum 2.0.

Joe Lubin, the other Ethereum co-founder has been open about the project’s lobbying with regulators. He has, over the years, touted the close ties that the Ethereum family has kept with the SEC.

Advertisement

For instance, he once talked about how “Bitcoin and Ethereum arrived before regulators were paying attention” and that “we were fortunate enough to frame our token as a utility token” while “others will be seen as securities.”

News Source

Advertisement
Continue Reading

Ripple

Inside the Ripple vs. SEC saga: Investigation reveals new details of personal interests at the SEC

Published

on

ripple-v-SEC
  • An investigation by FOX Business has revealed new tie-ups in the SEC vs. Ripple case, including Gensler’s huge role before he joined the SEC.
  • Andreessen Horowitz has also been identified as one of the key players protecting Ethereum and nudging the SEC on which way to regulate the space.

Eleven months ago, almost to the day, the U.S Securities and Exchange Commission (SEC) sued Ripple Labs for violating securities regulations with its sale of the XRP token. It also sued Brad Garlinghouse and Chris Larsen, the CEO and Chairman of the firm respectively, for facilitating this violation and benefitting personally from it. Since then, it’s been a lengthy legal battle that doesn’t seem to be ending soon.

But were the charges motivated by personal interests? Are there higher powers that are protecting the other projects, especially Ethereum? Was Ripple identified as the cheap target of the enforcement despite working extensively with the SEC to prove it had abided by the law? FOX Business believes so, and in its latest investigation, it made out links between Gary Gensler, Bill Hinman, Jay Clayton, Joe Lubin, Andreessen Horowitz and other powerful players that span back to over three years ago.

Jay Clayton

The biggest factor in the saga is Clayton, the former SEC head who in his last act filed the lawsuit against Ripple (literally hours before he left office). Clayton had been a Wall Street lawyer who, as a Republican, advocated for a free market. In fact, in his time at the SEC, most of the 65 new rules he passed were towards deregulation.

Advertisement

Prior to his action against Ripple, Clayton had brought 87 actions against cryptocurrency businesses. Most of these were charges of selling unregistered securities, with the two standouts being Telegram and Kik. The former had conducted a $1.7 billion token sale, one of the largest ever and had to return $1.2 billion to investors and shut down.

The investigation unearthed that in January 2018, Clayton had asked Andreessen Horowitz, one of the world’s most renowned venture capital firms, to organize a summit of cryptocurrency leaders. The purpose of the summit was for the leaders to weigh in on regulations and make recommendations to the SEC.

Sources with knowledge of the matter revealed that Ethereum was vastly represented, with several members of the Ethereum Enterprise Alliance in attendance.

Advertisement

One lawyer who attended the summit, Lowell Ness, later detailed that Clayton had told Andreessen to “round up the industry players to essentially lay out a very detailed written, foot-noted memo on what existing law says about utility tokens” and “give a proposal about where to go from here.”

Ripple executives, or their affiliates, were not invited to this summit.

This summit may sound like just another random event. But a year later, one of the lawyers present in this meeting was in a panel discussion in which he took partial credit for the now-very-famous Bill Hinman speech in 2018. This was the speech in which Hinman, who was a top SEC official, said Ether and BTC weren’t securities. He didn’t exempt any other cryptocurrency.

Advertisement

The lawyer, Nancy Wojtas of Cooley LLP, stated in part that “director Hinman’s speech … most of what he says in there came out of the safe harbor as well as the meetings we had with him.”

Was it a coincidence that Hinman exempted Ethereum after holding a summit with top Ethereum advocates?

Gary Gensler

Just as important to the Ripple saga is Gary Gensler, the current SEC head and former CFTC chairman. Sources have revealed that even before joining the SEC, Gensler was just as involved in laying out regulations meant for the cryptocurrency industry.

Advertisement

The first meeting was in March 2018. While all the details about the meeting have not been disclosed yet, sources say Gensler asked Clayton to take an even harsher stance on digital assets.

From the onset, Gensler had made up his mind that Bitcoin was not a security under the Howey test. Ethereum, on the other hand, wasn’t as clear-cut as BTC. Ripple’s XRP for him was an obvious security, even before the case against the company.

He told the New York Times in 2018:

Advertisement

There is a strong case for both of them — but particularly Ripple — that they are noncompliant securities.

Days after the first meeting, Clayton stated in a town hall meeting in Atlanta,  “Most of what I’ve seen in the ICO space is a securities offering. It is raising money for a project where I give you my money, you give me some type of write-back that reflects a return on your project. That’s a securities offering.”

That first meeting isn’t the most controversial one, however. On December 21 last year, Gensler met Clayton once again. On his public schedule, Clayton detailed the sitdowns as “Meeting with Gary Gensler, president-elect Joe Biden’s transition team.”

Advertisement

The most striking thing about this meeting, in particular, was that it was one day before Clayton and the SEC charged Ripple with securities violations.

SEC giving Ethereum and Bitcoin a “hall pass”

Ripple has accused the SEC of bias and picking the winners and losers in the cryptocurrency industry. Garlinghouse, the CEO, has openly accused Clayton, and now Gensler, of playing favorites and giving Bitcoin and Ether a hall pass.

And it’s not hard to see why the California company feels it’s being targeted, especially vis-a-vis Ethereum. The Ethereum founders held an ICO as well and Vitalik has been quite involved in developing the platform up to date, including championing for Ethereum 2.0.

Advertisement

Joe Lubin, the other Ethereum co-founder has been open about the project’s lobbying with regulators. He has, over the years, touted the close ties that the Ethereum family has kept with the SEC.

For instance, he once talked about how “Bitcoin and Ethereum arrived before regulators were paying attention” and that “we were fortunate enough to frame our token as a utility token” while “others will be seen as securities.”

News Source

Advertisement
Continue Reading

Ripple Vs SEC

SEC v. Ripple case makes “good progress” to reach conclusion next year, says CEO Brad Garlinghouse

Published

on

ripple-v-SEC
  • Ripple’s CEO has recently shared the payment giant’s progress in the SEC vs. Ripple case.
  • Ripple announces partnership with the Republic of Palau to help the country explore its first national digital currency.
  • Ripple forays into NFTs with a $250 million fund as it partners with mintable, VSA partners and mintNFT.

Ripple CEO shares the payment giant’s progress in the SEC vs. Ripple case. The firm is making strides with new partnerships, powering the national digital currency of the Republic of Palau. 

SEC vs. Ripple case expected to close in 2022 with positive outcome

In a recent interview, Brad Garlinghouse, CEO of Ripple, told CNBC that the payment giant is making strides in court proceedings in the SEC vs. Ripple case. 

Garlinghouse said, 

We’re seeing pretty good progress despite a slow-moving judicial process. Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications.

The Securities & Exchange Commission (SEC) has raised concerns about the payment giant’s close ties with XRP. Ripple is the largest public holder of the altcoin, and the proceedings in the case against the firm have impacted the cryptocurrency’s price. 

Advertisement

Ripple’s On-Demand Liquidity (ODL) corridor uses XRP to facilitate cross-border transactions for clients at a lower cost. This has raised flags for regulators, as the SEC suspects that $1.3 billion XRP was sold as an unregistered securities offering. 

Proponents on crypto Twitter argue that the outcome of the SEC vs. Ripple case would have broader implications for Ethereum and other cryptocurrencies in the market. 

Alongside the legal proceedings, Ripple has now partnered with the Republic of Palau, an island country, to power a national digital currency. Ripple has previously worked with Asian countries, partnering with them to provide liquidity through the ODL corridor or power national digital currencies, like in the case of Bhutan. 

Advertisement

The payment giant is struggling to remain relevant as most competitors foray into NFTs and the metaverse. Ripple announced a $250 million fund in partnership with mintable, VSA partners and mintNFT to support creators and marketplaces working on NFT projects. 

FXStreet analysts have evaluated the XRP price trend and predicted that the altcoin will see fireworks if it moves above $1.2. 

News Source

Advertisement
Continue Reading