Ripple vs. SEC: Could This Be IT?! Latest XRP Updates!!

For years the sec has been wanting to Crack down on cryptocurrency it’s Already done away with a few and its Case against ripple and its executives Has made it clear that xrp is high up on The sec’s hit list Now we’ve seen the case take many Unexpected twists and turns since it Began and what’s been revealed so far Could have huge implications not just For ripple and xrp but the rest of the Crypto industry as well Today i’m going to quickly outline the Sec’s case against ripple bring you up To speed on what’s been going on in Court analyze xrp’s price action and Give you my thoughts on what comes next [Music] Before we go to court i must seek legal Recourse i can’t give you any financial Advice or legal support Education and entertainment are the only Things i exhort Please contact a financial advisor if Your portfolio is looking short Now if this is the first time we make Contact my name is guy and i believe Crypto is where it’s at that’s why i Create high quality crypto content That’s filled with facts and stats coins Tokens news reviews you know all of that Now if you want to join me on my path Subscribe to the channel and give that Notification bell a pat

That’s all you need to know about me Let’s see what’s been going on with the Sec’s case against ripple and what it Means for xrp If you’re unfamiliar with ripple and xrp The sec or the sec’s case against ripple Here’s what you need to know Xrp was referred to as ripple when it First launched hence why some use the Names interchangeably to describe the Company and the cryptocurrency even Though it’s not technically correct to Do so Xrp has been one of the largest Cryptocurrencies by market cap since it First started trading In contrast to most cryptocurrencies Xrp’s purpose is basically to optimize The existing financial system rather Than replace it hence why xrp is often Colloquially referred to as a banker Coin Ripple leverages xrp as part of its Operations including cross-border Payments interbank payments and other Products and services geared towards Financial institutions Nearly 100 of xrp’s maximum supply of 100 billion was allocated to ripple in Some way with the founders receiving Around 20 Now the ripple personnel who are Relevant to this video are ripple Co-founder chris larson and ripple ceo

Brad garlinghouse so keep their names in Mind Now the securities and exchange Commission or sec is one of the Regulators of asset markets in the United states it was formed following The wall street crash of 1929 which Began the great depression As its name suggests the sec focuses on The exchange of securities which it Subjects to strict regulations in the Name of investor protection This includes stocks bonds and in some Cases cryptocurrencies According to the sec an asset is a Security if it meets all four criteria Of the howie test these are An investment of money meaning you use Money to buy it In a common enterprise meaning the price Action of the asset is the same for Everyone who bought it with the Expectations of profit meaning moon Lambo And coming from the efforts of a third Party meaning the expectation of profit Is coming from an individual or Institution you can identify Now this last criterion is the most Relevant to cryptocurrencies because Sometimes there is an individual or Institution you can identify that’s Creating an expectation of profit from Investing in that coin or token

Naturally the sec considers these kinds Of cryptocurrencies to be securities Which should be subject to strict Regulations in the name of investor Protection which is again the sec’s Supposed end game The sec figure most relevant to this Video is bill hinman the former director Of the sec’s corporate finance division Who famously stated that eth is not a Security because it is quote Sufficiently decentralized meaning you Can’t identify which individuals and or Institutions are creating expectations In december of 2020 the sec sued ripple Brad and chris on the grounds that their Sales of xrp were illegal because xrp is A security The crux of the sec’s argument is that Ripple brad and chris marketed xrp as a Security through their words and actions As such they are the identifiable Parties creating an expectation of Profit among xrp holders The sec wants ripple brad and chris to Cough up the billions they made from Their sales of xrp as well as a series Of additional sanctions like banning Brad and chris from participating in Initial coin offerings Now the crux of the initial counter Arguments from ripple brad and chris was That xrp is sufficiently decentralized Meaning there are other parties driving

This expectation of profit as the case Has evolved however ripple brad and Chris have found a stronger Counter-argument and that’s that even if Xrp is not sufficiently decentralized They were not given fair notice by the Sec that what they were doing was Illegal because they were selling xrp For years without any legal issues Ripple brad and chris want the sec’s Lawsuit against them to be dropped and Ideally for xrp to be designated as a Currency or commodity This is so that xrp can be relisted on Crypto exchanges in the united states Which delisted xrp when the sec sued Ripple and its execs resulting in Serious losses for xrp holders so much For investor protection Now it’s safe to say it’s been a wild Ride so far and if you want to find out What happened in the past you can check Out my last update about the sec’s Lawsuit against ripple using as ever the Link in the description Now before i go any further i need to Give credit where credit is due so much Of the content in today’s video was made Possible by jeremy hogan from the legal Briefs youtube channel who’s been Providing detailed updates about the Sec’s case against ripple ever since it Began i’ve left a link to jeremy’s Channel in the description if you’re

Interested and it’s well worth checking Out Anyways it’s been about half a year Since i last talked about the sec’s case Against ripple and boy has a lot Happened since then For a couple of months after that video Went live there actually weren’t that Many updates this is because of all the Experts called to testify as part of the Case who were being cross-examined for Hours on end by the secs and ripples Lawyers Note that i’ll be lumping in brad and Chris as part of ripple to keep things Simple and only mention them by name When it’s relevant Interestingly one of the experts called In as part of the case was meant to Analyze xrp at the technical level to See if it was decentralized now Unfortunately i wasn’t able to find the Name of this expert nor the report they Put together but it seems it never Became a meaningful part of the case Come january expert witnesses were still Being called in and cross-examined Causing both parties to agree to extend The discovery date Now this is legal speak for the last day That the sec and ripple can submit Evidence in support of their arguments And it would mark the beginning of the End of the case

The judge also ruled that the sec must Comply with ripple’s request to hand Over documentation related to bill Hinman’s speech about eth being Sufficiently decentralized The assumption there is that this Documentation will contain some insight About how the sec is coming to Conclusions about cryptocurrencies Including xrp It certainly seems like there’s Something there because the sec refused To hand over the documentation on the Grounds that it’s not relevant to the Case and repeatedly filed for extensions Of the deadline to submit those Documents which the judge continued Granting for some odd reason In late january ripple handed over some Of its own documentation which had been Demanded by the sec late last year Including emails that were sent by brad And chris to ripple executives and xrp Investors In an email to ripple executives brad Said that ripple’s 2017 announcement That it would put 55 billion of its xrp In escrow increased confidence among xrp Investors because it would calm their Fears about ripple dumping its xrp Holdings on the market The issue there is that brad exclusively Referred to xrp holders as investors Which supports the sec’s claim that xrp

Is a security and contradicts ripple’s Claim that xrp’s primary purpose is to Facilitate payments not for speculative Investing In an email to a concerned xrp holder Chris explained that they shouldn’t Panic about xrp’s price because its Adoption by financial institutions as a Result of ripple’s efforts will lead to An increase in demand and an increase in Price by extension The issue there is that chris is Essentially confirming what the sec is Accusing ripple of Now believe it or not but this is Actually fine as far as ripple is Concerned because the crux of its Current counter argument is the fair Notice defense i mentioned earlier As it so happens the judge granted Ripple’s fair notice defense in early February now to clarify this didn’t mean That ripple won the fair notice defense Just that it would be allowed to argue It something that the sec had pushed Back against with all its might because It knows it’s a strong argument In mid-february the sec f’ed up when it Changed its position on the Classification of bill hinman’s ethereum Speech Initially the sec argued that bill’s Speech was just his opinion and Therefore irrelevant to the case

The funny thing is that if bill’s speech Was just his opinion then this means the Sec should have no issues releasing its Internal documentation related to bill’s Speech in response to ripple’s request Realizing this the sec tried to Backtrack by arguing that bill’s speech Was a regulatory recommendation after All and that any documentation related To it should therefore not be released As it’s an internal matter protected by Some legal mumbo jumbo that i won’t even Try to explain The judge recently stopped the sec in The middle of its attempted 180 which is A bit of a shame because if the judge Had argued that bill’s speech was a Regulatory recommendation after all then It would have created some regulatory Clarity for the crypto industry albeit At the expense of xrp On the other hand it’s very likely that The sec’s documents about bill’s speech Contain even more important regulatory Information that’s relevant to both xrp And the wider crypto industry but the Worry there is that the sec will redact Much of what was said in these documents Fortunately for the sec some of the Legal documentation that it had Requested from ripple effectively Confirmed that the company was warned Early on that its sales of xrp could Constitute the sale of an unregistered

Security Ripple’s legal counsel explicitly stated That this risk could be reduced if Ripple and its founders didn’t keep any Xrp for themselves and you’ll recall That they actually did the exact Opposite Fortunately for ripple there’s quite a Bit of nuance to this concerning Revelation For starters the legal memo which warned About xrp potentially being a security Was written in 2012 before xrp’s mainnet Had launched or any xrp had actually Been sold This is important because ripple had Initially intended to sell xrp to both Retail and institutional investors but Decided to sell it only to institutional Investors after being warned xrp could Be a security When you combine this with the fact that Cryptocurrency regulations were Objectively unclear between 2012 and 2018 ripple can still claim the fair Notice defense because as far as they Knew they were operating within the Bounds of the law until the time they Were sued by the sec in 2020 After the sec tried and failed to argue That all the other crypto lawsuits During that time were a form of fair Notice for ripple the sec brought in an Expert opinion on the last day of

Discovery in february who presented a Report which proves that ripple’s Actions have a direct effect on the Price of xrp Now i did my best to get my hands on This expert opinion yet to no avail Although a few screenshots of it can be Seen in one of jeremy hogan’s updates About the lawsuit in march and from what I could see the correlations were quite Clear At the very least the correlations were Clear enough that the judge recently Struck down ripple’s request to have This expert opinion thrown out and it’s Going to be interesting to see what role It plays in the case going forward On that note if you’re curious about What moves the crypto market you can Find out using the link in the Description Anyhow xrp is currently about the same Price it was before the sec sued ripple At the end of 2020 but there’s obviously Been a lot of ups and downs since that Time what’s cool is that the price Pattern i painted back in october seems To have been spot on xrp’s price ended Up breaking to the downside though my Price target was a bit off As you might expect xrp’s price action Is heavily correlated to any news Related to the sec’s case against ripple As well as ripple’s own announcements

For example xrp rallied in response to Ripple’s announcement that it had Launched a liquidity hub for Cryptocurrency in november offering Institutions frictionless access to the Largest coins and tokens xrp also Rallied in response to the news that the Judge had granted ripple’s fair notice Defense in february Xrp briefly returned to its downward Trend until early march when the current U.s administration released its Executive order about cryptocurrency Something that was well received by the Crypto community as it’s the first step Towards some regulatory clarity Xrp started to crash at the end of march And this seems to have been because of a Ridiculous campaign to transition Bitcoin from proof of work to proof of Stake something which ripple co-founder Chris larson is a part of Now if you want to get the facts about Bitcoin’s energy use you can check out The link in the description anyhow i Digress Xrp saw a small pump earlier this month When the judge compelled the sec to Release the documents related to bill Hinman’s ethereum speech This begs the question of what comes Next for xrp and i suppose there are two Answers here A technical one related to xrp’s price

And a fundamental one related to the Sec’s case against ripple From a technical perspective xrp is Struggling to sustain its current Support of around 65 cents but to be Fair this is the case with just about Every other cryptocurrency right now The silver lining is that xrp continues To be in a medium-term uptrend from a Fundamental perspective it doesn’t look Like the sec’s case against ripple is Going to be ending anytime soon As jeremy hogan has pointed out it’s Evident that the sec is trying to drag This case out for as long as possible In a recent tweet jeremy said that the Case is unlikely to be resolved before The end of the year and this is because Of a recent agreement between the sec And ripple which set a series of court Dates for the summer and just before Christmas At this point in time i honestly can’t Say which side is winning but it could Be irrelevant to xrp’s price since we Could be thoroughly in the depths of a Bear market by the time the case is Eventually resolved I suggest checking out my video about The best kryptos to hold during a bear Market just in case that will be in the Description Now to wrap things up i want to talk About a crazy thought that crossed my

Mind while doing the research for this Video It was inspired by a controversial claim From ripple’s ceo brad garlinghouse last October and that’s that the sec helped Ethereum become the second largest Cryptocurrency Now while i certainly don’t think this Actually happened i am curious as to why The sec targeted xrsp specifically The fact of the matter is that there are Many other crypto projects that fit Xrp’s profile so to speak yet the sec Hasn’t really gone after them at least Not yet The first possibility is that ripple is Based in the united states and this Makes it much easier for the sec to go After compared with other large crypto Projects that are based elsewhere The thing is that the sec does seem to Be going after those too as revealed by Its surprise lawsuit against terror and Its mirror protocol late last year the Sec has gone after overseas crypto Companies in the past as well The second possibility is that ripple Has a lot of money and the sec is trying To secure a sizeable settlement that Will make for good headlines and Potentially be used to fund the Expansion of its regulatory operations The thing is that if this were true then The sec would try and maximize

Settlements by going after many of the Other projects with similar mo’s to Ripple Also it’s only issued 2.4 billion Dollars in crypto related fines since 2013 which isn’t much all things Considered The third possibility is that the sec is Suing ripple to set the precedent it Needs to go after other crypto projects After all xrp is one of the largest Cryptocurrencies out there and by taking Out one of the big guys it sends a Signal to the rest of the industry The thing is that the sec doesn’t have The resources to sue so many crypto Projects which is part of why jeremy Hogan speculated in january that the sec Will choose to crack down on Cryptocurrency exchanges instead and sec Chairman gary gensler’s comment suggests This could happen The fourth possibility is where things Start to get a bit crazy Ripple created a payment system with xrp Called ripplenet and as far as i Understand it’s an alternative to the Swift payment system used by financial Institutions in almost every country With a few recent exceptions of course As far as i can tell ripple net was Actually seeing some adoption from Financial institutions in select regions Shortly after it launched in 2019

Given that the sec likely first engaged Ripple in mid to late 2020 this suggests That it was a response to the threat of Ripple net rather than ripple’s sales of Xrp it would also explain why the sec Waited so long to crack down on ripple But in truth this timing could just be a Coincidence As to why the sec isn’t going after Other big cryptocurrencies i suspect This mostly has to do with stable coins Most of the largest cryptocurrencies are Smart contract cryptos that support Stable coins which are extremely Important to the continued global Financial hegemony of the united states Besides being de facto digital dollars Stable coins are backed mostly by u.s Government debt and that means that they Offer a way for the u.s government to Fund itself while simultaneously Increasing dollarization in other Countries It’s safe to assume that this is not a Dynamic the sec wants to disrupt The craziest part is that much of the Government debt that’s backing Stablecoins is being custodied by Blackrock and you can learn about how That beast came to be sitting on over 10 Trillion dollars in assets by using the Link in the description And that’s all for today’s update about The sec’s case against ripple if you

Found it helpful you can return the Favor by smashing that like button be Sure to subscribe to the channel and Ping that notification bell too so you Don’t miss the next video that hits the Tube In the meantime you can check out coin Bureau eclipse for exclusive crypto Content and tune in to the coin bureau Podcast to get the kind of crypto Knowledge that will stay in your head You can also find me on twitter tiktok And instagram where i share memes and Such or join my telegram channel if Keeping up with the crypto market is Feeling tough My weekly newsletter is a diamond in the Rough it’s packed with insider info such As a detailed breakdown of my crypto Portfolio and last but not least there’s The coin bureau merch store where you Can find a parallel with crypto themes Use the links down in the description if You please Thank you so much for your time remember Not to let the crypto market mess with Your mind this is guy bidding you Goodbye [Music]


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