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Alluvial

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  1. Lee will only be the temporary Chair until Gensler is confirmed. The Chair was Roisman after Clayton resigned, but Roisman is a Republican that was appointed by Trump; Lee is a Democrat. That's the reason for the temporary switch.
  2. It is a problem that they have information that we don't. So, for example, they know about the Moneygram deal or some positive announcement that is upcoming. They could wait until after the news is released and then sell at a higher price. But I do recall that they sign some type of ethical affirmation about not doing such things, but do they abide by it? Who knows? Probably. They could establish a protocol where if they decide to sell a certain amount, those sales could be made by a third party who does not have the inside information and only must sell over a certain time period designa
  3. I think Ripple felt that because xrp is not a security (and that the sales of xrp to the public did not meet the definition of an investment contract based on the Howey test) that there was no reason to register the sales as a securities offering. Registering the sales with the SEC, and selling only to accredited investors, would have been a nightmare because those xrp are deemed securities at that point, they don't just become non-securities. In other words, an accredited investor doesn't just get to turn around and sell the xrp on some exchange to a non-accredited investor. That's my unde
  4. I noticed in the video that the attorney said that there was no settlement. To some extent that was true because the court decided the case on the merits. However, the court did order the parties to then settle as to what Kik must do, and the parties did come to a settlement. If Ripple were to lose, my guess is the court would order the parties to settle and likely there would be fines and notice of future sales. The problem about the future sales to accredited investors is that those xrp (as I understand it) would continue to be securities - they don't just convert to non-securities
  5. As to when Gensler will actually become the SEC Chair, here are the timelines for previous Chairs. Trump nominated Clayton on his first day in office - January 21, 2017. On April 4, 2017, the Senate Banking Committee voted for his nomination to be presented to the full Senate. On May 2, 2017, the Senate confirmed the nomination, and Clayton was sworn in and became SEC Chair on May 4, 2017. Obama nominated Mary Jo White on February 7, 2013, and she was sworn in on April 10, 2013.
  6. https://www.coindesk.com/gary-gensler-confirmed-as-joe-bidens-sec-chair-pick I am not that familiar with the process, but apparently there are 5 SEC commissioners appointed by the President. Currently, with Clayton resigning there are 4. The President designates one of the commissioners to be the Chair, and he has picked Gensler as the new commissioner and Chair. My understanding is that the Senate must give consent (by majority) before Gensler actually takes the role of SEC Chair. I am not sure when that would take place. Obviously, we want it to be sooner rather than later so that
  7. No reason to apologize. Hester Peirce's concurrence could not be more relevant to our case. On first reading, her analysis seems exactly right in my opinion, and I am sure every Ripple attorney assigned to this case will read it.
  8. It's also interesting to note that Mary Jo White was appointed by President Obama as SEC Chair. The judge presiding over this case is an Obama appointed judge. The outgoing SEC Chair was a Trump appointee who filed this case on his second to last day. Ripple made it known that it supported Biden, and donated to the Democrats. Biden will be appointing a new SEC Chair in the near future. Apparently, one of the four frontrunners is Gary Gensler, who, if I recall correctly, was at some point at least not a big fan of xrp (suggesting that it is a security). Hopefully, he doesn't get the posit
  9. I checked the Pacer website and saw that the Answer to the SEC Complaint is to be filed with the court no later than March 5, 2021. That deadline applies to all defendants (Ripple, BG and CL). Ripple's attorney said the other day that the Answer to Complaint would be filed in the upcoming weeks so it could very well be before the deadline (usually answers aren't filed early, but in this case it likely will). Also noticed the entry of seven more attorneys on behalf of Ripple, including one MARY JO WHITE, the former SEC Chair from 2013 through 2017. It's definitely on!
  10. I think you're right that the Kik result can be used as a general guide as to how the Ripple case could possibly play out (but I think that the Kik case was in several ways different from Ripple's case.) The Kik case lasted about about 16 months. (The SEC complaint was filed on June 4, 2019 and the court entered judgment in favor of the SEC on September 30, 2020.) The case was resolved by both parties filing motions for summary judgment (where the court decides the legal issue when there are no real facts in dispute). After ruling in favor of the SEC (that Kin sales were deemed in
  11. The most ridiculous part of about this whole thing is that there is likely not even one cryptocurrency investor in all of the US who is thinking "wow, I would have been better served if I would have had a prospectus and disclosure information about xrp." The whole thing is just laughable. The SEC is not helping investors in this situation, it is hurting them. Unfortunately, the SEC's real mandate is not about helping investors, it's about generating fines that exceed its budget so the SEC can proudly tell everyone what a helpful wonderful regulatory body it is. If it was about helping inve
  12. Either party can ask for a jury trial. However, I don't think that this will go to a jury unless there are questions of fact to be resolved. Most likely, if there is no settlement, both parties will file motions for summary judgment. A court rules on a summary judgment motion when there are no questions of fact in dispute, and there probably aren't any disputed factual issues in this case. What is in dispute is the legal conclusion. So the court will take the undisputed facts and make a legal determination of whether the sale of xrp by Ripple violated securities laws. In the Kik case, bo
  13. The SEC, in its complaint against Ripple, stated that: "Courts have found that novel or unique investment vehicles constitute investment contracts, including interests in orange groves, animal breeding programs, railroads, mobile phones." So the fact that it's a toy doesn't mean that it cannot be deemed as part of an investment contract.
  14. It would be a nice outcome for the xrp community. The problem I think is that when the xrps are sold by Ripple, and that sale is deemed an investment contract, those xrps become securities. In other words, the xrps continue to remain securities, even if they are sold later by someone who is not the issuer. That's my limited understanding of it, and likely why the exchanges are ceasing to allow trading in xrp. And I figure the securities attorney who filed the case against Coinbase has probably done enough research into the issue. Any idea what happened to the "securities" in the vari
  15. Analogies are never great, and this one probably is flawed - just sort of wrote it and sent it. And yes, of course it's a toy, but why exactly does the sale of the beanie babies by the company under these circumstances not pass the Howey test?
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