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John E Deaton
@JohnEDeaton1
Founder of Crypto-Law.us and Managing Partner of the Deaton Law Firm; Bitcoin; ETH, XRP; Blockchain enthusiast; lawyer; entrepreneur
John E Deaton’s Tweets
Based on the SEC’s schizophrenic argument regarding what constitutes the common enterprise in the case, there’s a possibility Judge Torres could deny summary judgment and rule that there is a genuine issue of material facts as to the existence of a common enterprise.
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What some people have failed to consider is that Judge Torres could say denied to both summary judgment motions and it goes to a jury. Until we get to read all the Rule 56 facts and read all the underlying evidence relied upon, it’s near impossible for me to predict anything more
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Here is how the Judge could give Ripple an outright win. People are focusing on the pre-1933 Blue Sky argument. That argument is for the 2nd Circuit and Supreme Court. I don’t believe Judge Torres agrees with that argument although the current Supreme Court could.
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I’m saying ripple’s transactions are.. I can’t think of how they will get around it. Also another reason why I’m convinced they’ll lose is notice how they really didn’t put up a good argument about anything but the blue sky laws on whether an actual contract is needed or not.. twitter.com/Leerzeit/statu…
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Just when you don’t think you could respect or like PBD any more than you already do, he proves you wrong with a video like this. 👇
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A sitting Commissioner of the SEC made the point is making. She said:
“We tend at the
SEC to talk about the token itself as a security and that’s really a shorthand...what we’ve done now is said that orange 🍊 groves are kind of like the security.”
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herself has criticized her colleagues at the for focusing too much on the token itself.
Watch her be interviewed by below and go to the 18:58 time mark in the video. 👇👇
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The application of Howey is not that difficult to analyze. Those involved in Crypto litigation and regulatory policy must get judges and U.S. regulators/ legislators to stop focusing on the token itself. The token itself is actually somewhat irrelevant to the Howey analysis.
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Replying to @JohnEDeaton1 @pyrusisback and 2 others
Yep - the relevant question at any given time is whether the LBC token is being sold in an investment contract transaction; is the *seller* at the time of the sale inducing the buyer to purchase from her by making undertakings to the buyer about the profit potential of the asset?
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Great explanation.
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Replying to @Truckermal3 @NYcryptolawyer and 2 others
The SEC wants to have the tokens themselves implied to be implicitly securities by omission of any statement to the contrary from the Judge. The Judge asked SEC to provide that clarity. They refused. LBRY complained and here we are with this meeting tomorrow.
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During this 🧵, I share the interview I did w/ well over a year ago when I was researching the #XRPLedger and independent developers who have no connection to or its executives.
is a PERFECT example of what’s wrong w/the SEC lawsuit.
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SpendTheBits is set to expand to El Salvador. thecryptobasic.com/2023/01/28/xrp
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XRP Ledger-Based Bitcoin Spending Solution Sets its Sights on El Salvador
#ripple #xrpl #elsalvador #crypto
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Of course, the most important person for me to thank is . Although the SEC did not object to her or ICAN filing an amicus brief, it still takes courage to stand up to the government. Naomi deserves great credit.
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It amazes me that the importance of tomorrow’s hearing isn’t being discussed by industry leaders. I must, however, express gratitude to and for reaching out and assisting me in preparation for the hearing assuming the judge allows amicus participation.
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On January 30 at 3 pm there’s a hearing in the @LBRYcom case. I’ve been admitted in the case and filed an appearance on behalf of @naomibrockwell. It is my honor to represent Naomi, who epitomizes the need for regulatory clarity regarding users and secondary market transactions. twitter.com/attorneyjeremy…
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Listen to explain how legacy players are getting into crypto. I’ve said for more than a year that is crashing crypto, including exchanges, so that the incumbents can get a bigger slice. After that, there will be some level of clarity worked out.
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We must educate the legislators to stop viewing the token itself as the security. Any asset or commodity can be marketed, packaged, offered and sold as a security. Beavers 🦫, condos, orange 🍊 groves, and even #Bitcoin , have all been offered and sold as a security.
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that would result from Ripple’s significant
entrepreneurial and managerial efforts to date (and likely in the future), on which public
investors expecting profit relied when making an investment of money into Defendants'
common enterprise."
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The SEC’s allegations regarding #XRP’s status even travels into the future.
READ THIS:
“Even if some country were to recognize XRP as
fiat currency at some point in the future,
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The SEC even asserts secondary sales independent of Ripple are securities. This means no matter who sales XRP regardless of Ripple. Let’s quote the SEC:
"The XRP traded, even in the secondary
market……TODAY represents that investment contract."
The SEC doesn’t even stop there!
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The SEC’s motion isn’t limited to past sales of XRP or limited to only Ripple’s sales of XRP. The motion argues:
“A purchase of XRP IS an investment in a common enterprise with other XRP holders and with Ripple.”
Thus, the SEC claims present sales of XRP are also securities.
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In the SEC’s motion for summary judgment, it writes “a purchase of XRP WAS an investment of money into
a common enterprise with other XRP investors and with [].”
Thus, every PAST sale of XRP is covered and the sales were securities.
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The SEC’s absurd theory is that each and every sale of #XRP, from anywhere in the
world, offered by anyone is, always has been, and always will be, the offer and sale, of a security.
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Jay and #STB are certainly NOT in a common enterprise with the same company that Jay hopes to take low end market share from. Jay is also not in a common enterprise with every other #XRPHolder in the World as the SEC asserts in its Complaint and Summary Judgment motion.
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It’s absurd b/c Jay relied on his talent, work-ethic, and his efforts and skill to develop #STB. The #XRP that Jay and #STB utilize - as the native currency of the #XRPLedger - to spend #BTC could NEVER be credibly considered an investment contract with Ripple aka a security.
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Clearly, between the amicus brief and the CBDC interoperability contest, ’s knows about him now.
In the Amicus Brief, Jay explains how #STB actually serves as a smaller alternative to Ripple’s ODL product/service.
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A year before winning 🏆 the CBDC contest, Jay demonstrated his app to me on TV.👇
Last year he laughed when I asked about Ripple and he said “John I’m pretty sure they don’t know who I am or that SpendTheBits even exists.”
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Jay received NOTHING from Ripple. No money. No advice. No technical assistance.
NOTHING!
AFTER he built his app, the only connection to Ripple is that Jay recently (last year) won the CBDC interoperability contest that was sponsored by Ripple beating out 500 contestants.
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Because the #XRPLedger is open source software, Jay decided he would build his payment app utilizing the #XRPL as a layer 2 solution to the #Bitcoin Dilemma.
Since Jay didn’t even know about Ripple, he didn’t ask Ripple or for permission to build his #XRPL based app.
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Since 2019, has been working to solve the “#Bitcoin Dilemma.”
Jay looked at the ⚡️ Network and decided it was too flawed b/c it didn’t eliminate the pre-funding of accounts and it required both parties to be online simultaneously and safety was an issue.
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saw that #Bitcoin was too slow, however. Even the newly designated Congressman assigned to lead the Congress in providing digital asset regulatory clarity - - recently stated that no one can’t wait 10 minutes or longer to pay for their coffee. 👇
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JUST IN 
Chair of the new Digital Assets Committee: Sending #bitcoin "takes so long my coffee gets cold. It's not ready for payments."
We are so early...
Chair of the new Digital Assets Committee: Sending #bitcoin "takes so long my coffee gets cold. It's not ready for payments."
We are so early...Show this thread
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In fact, there have been 15 Amicus Briefs filed in the 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 Amicus Brief.
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During this 🧵, I share the interview I did w/ well over a year ago when I was researching the #XRPLedger and independent developers who have no connection to or its executives.
is a PERFECT example of what’s wrong w/the SEC lawsuit.
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SpendTheBits is set to expand to El Salvador. thecryptobasic.com/2023/01/28/xrp
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Replying to @xrplumber @JohnEDeaton1 and 4 others
It's not illegal (that I know of). But definitely unethical since her job is to provide "oversight" of the SEC and that obviously conflicts with her feeding questions AND answers to the head of the Agency she is supposed to be keeping an eye on.
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