John Deaton Live xitter.cf/i/broadcasts/1lDxLPvkR…

Here’s the point to consider: on June 13, 2018 Clayton and Hinman receive the #XRP Howey Memo 📝, written by SEC enforcement lawyers. The Memo does not conclude by making any recommendations of any nature. It certainly does not recommend an enforcement action against @Ripple @chrislarsensf or @bgarlinghouse. The next day, on June 14, 2018, Hinman gave his speech and said the the top two Crypto assets, #BTC & #ETH, were not securities, but he failed to mention #XRP in any way. As expected, #ETH skyrockets on the news. Considering #XRP and #ETH had battled for the number two spot for years, everyone starts asking Clayton and Hinman and the SEC staff: “What about #XRP?” Less than 3 months after the Hinman speech was given, and the secret #XRP Howey 📝 written, @bgarlinghouse and @JoelKatz asked that same question to both Hinman and Clayton in a private meeting at the @SECGov. We have the actual meeting notes from Hinman’s Special Counsel who was assigned to him by the SEC and attended the meeting. The 📝 written by this SEC attorney tell us A LOT. This meeting, between Ripple’s CEO and CTO with Clayton, Hinman and SEC senior staff, was regarding the regulatory status of #XRP. In other words, why was #XRP not mentioned in the speech along with #BTC & #ETH? At this meeting, I’m sure the Ripple CEO reminded Clayton and Hinman of the following: #XRP was created two years BEFORE #ETH. In fact, @chrislarsensf had a meeting with the @SECGov, @CFTC, @federalreserve, #FinCEN, and @USTreasury in 2013 where he discussed his vision for #XRP - a year before the #ETH ICO. The following year, 2014, @USGAO listed #XRP as a “virtual currency utilized in a decentralized payment protocol called Ripple.” In 2015, Ripple settled with FinCEN, along with the DOJ’s approval, signed by then Assistant U.S. Attorney Kathy Haun, who later went to @a16z. Ripple was directed to comply with the Banking laws of the U.S. and agreed to provide the U.S. Government with an auditor’s report, approved by the DOJ, regarding all sales of #XRP for five years. The SEC had entered into a evidence sharing agreement with FinCEN a few years prior and had access to all of these #XRP transactions. In fact, the 📝 from this meeting shows that the Ripple CEO, usually a cool and calm man, exhibited frustration over the lack of regulatory clarity for #XRP, especially considering how #ETH was given a regulatory free pass. Garlinghouse spoke out and said: “Ripple is living in purgatory” because the SEC is being so vague and unclear regarding its status. The #XRP Howey Memo, analyzing whether #XRP satisfies the Howey test, had just been written two months prior and given to Clayton and Hinman. If that Memo had concluded #XRP was a security, you would expect Clayton and/or Hinman to respond to Garlinghouse something like: “We didn’t say #XRP was a non-security like #BTC & #ETH because we believe it is a security”, or “our lawyers believe #XRP is being sold as a security”, or “we think you may be in violation of Section 5” or “you need to register #XRP”, or similar words to that effect. But they did not respond that way. The notes from the meeting indicate that Clayton said something like “I encourage you to keep talking to the staff about that” and moved the meeting forward to discuss Ripple’s business model. 🤔