Hope Rises Among XRP Proponents for a Significant Upswing Amidst Crypto Market Expansion

March 13, 2024 Bitcoin.com

Ripple Executive Chairman Chris Larsen Says Hacker Accessed His Personal XRP Accounts

February 2, 2024 The Daily Hodl

XRP Jumps in Price As U.S. SEC Drops Aiding and Abetting Charges Against Ripple Executives

October 21, 2023 The Daily Hodl

Ripple Labs chair slams Biden, Gensler for having ‘screwed up’ on crypto

September 7, 2023 Coin Telegraph

Biden

Ripple Labs chair Chris Larsen commented on the recent cases involving Ripple, Grayscale, and the SEC, arguing it is time for Congress to take the lead on crypto policy.

The United States’ legal system is set to bring the crypto industry “back in the game” after the Biden administration “screwed up” its crypto policy, says Ripple Labs chair and co-founder Chris Larsen.

Speaking to Bloomberg on Sep. 7 about his firm’s July partial win against the Securities and Exchange Commission, Larsen argued the regulator lost on “everything that was important to [it] and important in the regulation of the industry.”

“The U.S. screwed up here on crypto and blockchain policy. This is the beginning now through the courts, unfortunately instead of through regulators, to get that clarity and get us back in the game.”

Larsen also commented on the latest court judgment in favor of Grayscale over its application to convert its Bitcoin (BTC) trust into a spot Bitcoin ETF, noting it “really admonished the SEC [...] in a way that you don't really see very often.”

I sincerely hope we’re seeing the beginning of the end of the SEC’s policy of regulation by enforcement. The Courts are rejecting it, and now it’s time for Congress to take the lead on crypto policy.

Thanks @EdLudlow @technology for the chat! https://t.co/3gZOR4lq5J
— Chris Larsen (@chrislarsensf) September 6, 2023

Larsen argued the ruling was proof that SEC chair Gary Gensler knows crypto laws aren’t clear and simply likes the lack of clarity so “he can go after anybody and make up the rules as he goes along through bullying.”

“That's not the American way. We should have clear rules from the legislatures, not through these unelected, power-hungry and really misplaced decision-makers that you see in Gary Gensler.”

Gensler has however previously claimed that the crypto market is full of “fraudsters” and “Ponzi schemes” and that the SEC’s securities laws would help to clean it up.

Biden ‘killed’ San Fran blockchain hub

In another part of the interview, Larsen claimed Biden’s crypto policies “pretty much killed” San Francisco from being the “blockchain capital of the world” despite Silicon Valley’s tech hub reputation.

“We owned it and we don't anymore because the Biden administration, for whatever reason, decided they wanted to push this industry offshore,” Larsen added.

“That was a missed opportunity. It's really unfortunate. Hurt the city.”

He pointed to London, Singapore and Dubai as global blockchain capitals for their “clear rules that protect consumers and also celebrate innovation.”

“Why isn't America leading that call?” Larsen asked. “That's what we've always been, and we've got to get back to it.”

Magazine: Opinion: GOP crypto maxis almost as bad as Dems’ ‘anti-crypto army’

XRP ruling a ‘watershed moment’ but we’re not out of the woods yet — Lawyers

July 14, 2023 Coin Telegraph

Appeal

The crypto community has gathered to celebrate the recent ruling on XRP's securities status, but lawyers warn there's more to it than meets the eye.

Ripple Labs’ split-decision victory against the United States securities regulator is being seen as a significant blow to the regulator’s “war on crypto,” however, crypto lawyers warn it isn't a definitive victory for the industry or the firm y

In a landmark ruling on July 13, Judge Torres determined that XRP (XRP) is not a security — at least when sold to the general public.

The decision was met with a joyous uproar from XRP token holders and came with a massive surge in the token's price, with industry heavyweights lauding the decision as likely to aid crypto exchanges Coinbase and Binance in their respective lawsuits.

Luke Martin, the founder of crypto investment firm Venture Coinist noted that the “core component” of the United States Securities and Exchange Commission's (SEC) claim in its suits against Binance and Coinbase is that they offered the sale of unregistered securities on their platforms.

After losing on this matter in the case of XRP, Martin believes this will serve as a substantial blow to the SEC and its chair, Gary Gensler.

He called the decision “inconceivably bullish” for the industry:

This Ripple news is larger than XRP...

Remember when the SEC went on an all-out attack versus crypto a few months ago?

•Suing Binance for breaking securities rules
•Suing Coinbase for breaking securities rules
•Targeting 10-15 large altcoins as securities

Classifying tokens…
— Luke Martin (@VentureCoinist) July 13, 2023

Pro-XRP lawyer John Deaton shared a similar sentiment, stating that Coinbase was the other “winner” from the ruling and that altcoins would stand to benefit.

Similarly, Tyler Winklevoss, the CEO of cryptocurrency exchange Gemini, said the ruling “decimates” the SEC’s case against Coinbase. His twin brother, Cameron Winklevoss referred to the ruling as a “watershed moment” that will make it difficult for the SEC to claim authority over cryptocurrencies.

The Ripple ruling today decimates the @SECGov's case against @coinbase. Have fun with that one @GaryGensler. https://t.co/2lfFXxX2Xf
— Tyler Winklevoss (@tyler) July 13, 2023

Coinbase, Kraken and iTrustShares have already relisted XRP on their respective platforms following the decision.

Words of caution

Despite the positive outcome for XRP, several digital asset lawyers warned against celebrating too soon.

Law firm partner Stephen Palley of Brown Rudnick noted that the summary judgement is only “partial” and that the ruling by Judge Torres isn’t legally binding — instead, it may only serve as persuasive commentary for future courts to follow if they so choose.

A word of caution: that order in the Ripple case is a partial summary judgment from a single district court judge.

While persuasive, it's not binding precedent on other courts and will likely be appealed and could be reversed

don't yolo into anything based on that decision
— Palley (@stephendpalley) July 13, 2023

Palley and others noted that there’s also the chance the SEC may appeal the decision, which presents the possibility that a higher court overturns the rulings made by Judge Torres.

Ripple will also need to deal with the SEC’s claim that Ripple CEO Brad Garlinghouse and co-founder Chris Larsen “aided and abetted” the institutional sale of XRP, says U.S. lawyer James “MetaLawMan” Murphy.

Based on my quick read through, it looks like the only thing left for trial would be the claim that Larsen and Garlinghouse "aided and abetted" Ripple's Institutional Sales of XRP--which were the only sales the court found to violate the law. https://t.co/mi7i4Diy9j
— MetaLawMan (@MetaLawMan) July 13, 2023

The SEC alleged $728 million worth of XRP was sold from institutional sales.

United States-based commercial litigator Joe Carlasare ripped Garlinghouse on this point, asserting that Ripple “made $700 million in unlawful profit.”

No, the most important part of the ruling is the Court found that your company broke the law and made illegal institutional sales.

Your company made $700 million in unlawful profit. Good luck at trial claiming ignorance of Howey https://t.co/qSWEt34yFD
— Joe Carlasare (@JoeCarlasare) July 13, 2023

This claim was set aside by Judge Torres, and will likely be contested at trial.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

SEC objects to XRP holders aiding Ripple defense

July 21, 2022 Coin Telegraph

Brad Garlinghouse

As the case against Ripple rages on, the SEC wants to see certain “friends of the court” in support of Ripple be barred from providing legal aid to the defense.

The Securities and Exchange Commission (SEC) is attempting to block XRP holders from aiding in Ripple’s defense, and prohibit attorney John E. Deaton from any further participation in proceedings.

In its official objection submitted on July 19, the regulator opposed the decision to recognize 1,746 XRP holders as "amici curiae" along with attorney John E. Deaton.

Amici (plural: amici curiae) means “friend of the court” — an individual or organization not a party to a legal case but is permitted to assist a court by providing information, expertise, or insights. In this case, in support of Ripple’s defense.

Deaton has 3,252 affidavits signed by the token holders essentially stating that they are victims of the SEC’s lawsuit against Ripple as a result of lost profits.

Holders claim in the affidavits that they either did not assume legal responsibility for purchasing XRP, they bought the tokens for utilitarian purposes instead of investment purposes, or they did not buy based on promises made by the company and its representatives.

However, in its objection to XRP holders, the commission claimed that they are attempting to operate outside of strictly legal issues. The SEC wrote:

“Movants do not propose briefing on legal issues. Instead, they wish to present arguments based on 3,252 affidavits “attesting” to certain facts.”

The commission has cited alleged threats by Deaton against former SEC Chairman Jay Clayton as reasoning to dismiss him as amicus. The SEC included a redacted letter dated June 7 to Judge Torres that cites a YouTube video from 2021 in which Deaton stated he “might have to walk over and slap the [profanity] out of former SEC Chair Jay Clayton.”

The XRP holders and Deaton as amici are required to submit a public reply to the SEC’s objection by July 25.

Ripple is a blockchain company that issues the XRP token. The SEC has alleged in an ongoing court case which started in 2020 that Ripple and its executives Brad Garlinghouse and Christian Larsen sold XRP as unregistered securities.

Deaton queries SEC's treatment of McCaleb

Meanwhile, Deaton has claimed that the SEC has been inconsistent with its application of the law against Ripple, Garlinghouse, and Larsen. In a July 19 thread on Twitter, the lawyer explained that if the SEC truly thought XRP was a security, it would have filed an injunction against Ripple and issued a cease and desist order against the two executives and Jed McCaleb from selling their tokens.

Ripple cofounder Jed McCaleb has sold nine billion XRP since leaving the company in 2014.

The SEC claims #XRP itself is a security and anyone who sells it is violating Section 5 of the Securities Act. The SEC claims @Ripple @bgarlinghouse & @chrislarsensf “enriched” themselves at the expense of investors and it is seeking $1.3B in disgorgement from these defendants. https://t.co/9nJ1iNroth
— John E Deaton (207K Followers Beware Imposters) (@JohnEDeaton1) July 18, 2022

The outcome of this case could determine whether XRP is a security. If the judge rules in favor of the SEC, it could be the precedent the commission needs to pursue legal action against other crypto projects that sold tokens similarly to Ripple.

World Economic Forum Shares a Video About Changing Bitcoin’s Code to Proof-of-Stake

April 29, 2022 Bitcoin.com

Ripple CEO: SEC Lawsuit Over XRP ‘Has Gone Exceedingly Well’

April 17, 2022 Bitcoin.com

The SEC Set Itself Up for Catastrophe in Lawsuit Against Ripple, Says Crypto Legal Expert – Here’s Why

April 16, 2022 The Daily Hodl

Greenpeace, Ripple co-founder campaigning to change Bitcoin code

March 29, 2022 Coin Telegraph

Bitcoin Miners

Chris Larsen, co-founder of Ripple also joined in on the call, saying Bitcoin is the “outlier” now that Ethereum’s model is set to change.

Greenpeace, along with other climate groups, and co-founder and executive chairman of Ripple, Chris Larsen, has launched a new campaign aimed at changing Bitcoin (BTC) to a more environmentally friendly consensus model.

The “Change the code, not the climate” campaign aims to pressure key industry leaders, Bitcoin miners, and influencers like Elon Musk, and Jack Dorsey, into moving over to a new consensus model saying:

“If only 30 people — the key miners, exchanges, and core developers who build and contribute to Bitcoin’s code — agreed to reinvent proof-of-work mining or move to a low-energy protocol, Bitcoin would stop polluting the planet.”

Greenpeace cites concerns that the energy required to mine Bitcoin comes mostly from fossil fuels, and that miners are using coal waste and associated natural gas as ways to fuel their operations.

Greenpeace accepted Bitcoin donations for seven years between 2014 and May 2021 before announcing it was halting acceptance of Bitcoin donations, citing environmental concerns. Around the same time, Tesla CEO Elon Musk stopped accepting Bitcoin payments for Tesla vehicles also.

Ethereum (ETH), which currently relies on the same proof-of-work mechanism as Bitcoin, is in the final stages of a lengthy and complicated process to a new proof-of-stake mechanism. Greenpeace says proof-of-stake is much less environmentally harmful due to its lower energy consumption.

“Now with Ethereum changing, Bitcoin really is the outlier,” Larsen said to Bloomberg in an interview published on March 29. “Some of the newer protocols, Solana and Cardano are built on low energy,” he added.

Larsen stated he owns Bitcoin and Ethereum and wanted to see both cryptocurrencies succeed, but that Bitcoin is heading down an unsustainable path. He added that if he had concerns about Bitcoin as competition for Ripple, he would let it continue.

Some of the largest Bitcoin mining companies hold in excess of 5,000 BTC, upward of $237 million at current prices, and data shows that those with the most Bitcoin reserves are increasing their hash rate.

Greenpeace does note this in its manifesto, saying they understand Bitcoin stakeholders have an incentive not to change, as changing Bitcoin would make their expensive equipment much less valuable, meaning sunk costs or “other creative solutions” would have to be implemented.

Chris Bendiksen, a Bitcoin researcher at CoinShares was quoted in the report saying:

“I’d put the chance of Bitcoin ever moving to PoS at exactly 0%. There is no appetite among Bitcoiners to destroy the security of the protocol by making such a move.”

Greenpeace did not immediately respond to a request for comment.

chris larsen