Gatehub Announcement to XRP Holders

[VanGogh 1,484]

https://gatehub.net/blog/announcement-to-xrp-holders/

We have carefully reviewed the complaint that the SEC filed in federal district court in New York alleging Ripple’s XRP should have been registered as a “security” upon its creation in 2012, more than eight years ago, and charging that Ripple and its senior managers later engaged in market manipulation and self-dealing. See reference here.

Please be advised that GateHub Ltd. will continue listing XRP until the SEC’s complaint against Ripple is adjudicated and a final decision entered that XRP is properly classified as a “security,” or until we receive a cease-and-desist notice from the SEC.

Here’s why

We have never believed that XRP is a “security” under the prevailing “Howey” test in the US, and regard XRP primarily as a “utility” token whose value is based on its use in payments and foreign exchange.  Nor have we personally witnessed any improper market conduct by Ripple Labs or its senior officers.  Our own business decision to list XRP -- and our attempt to build a payments business using XRP on the XRP Ledger -- reflects this good faith belief.  We would not have proceeded to build a business within the XRP Ledger ecosystem if the SEC had issued any guidance whatsoever that XRP would be treated as an unregistered “security.” And we would have refused to do business with Ripple or anyone at Ripple who, in our judgment, engaged in fraudulent market practices.

Shortly after its development by Ripple’s founders in 2012, the software that drives the XRP Ledger was open-sourced and made available to developers free of charge, and is hosted on numerous third-party servers around the world.  Similarly, the client-side software can be downloaded and used by end users on their own mobile phones or computers.  

The point 

This is a “distributed” blockchain technology, and in theory, Ripple Labs could close tomorrow, but the ledger – and the recording of XRP transactions onto the ledger through the consensus process – would continue.   If Ripple and/or its senior executives defrauded individual investors, they should be subject to appropriate enforcement actions, and be forced to disgorge any ill-gotten gains.  But that is a far cry from an action by the SEC classifying XRP as a “security,” with potentially catastrophic consequences for individual investors, who did nothing wrong.

We remain optimistic about the future of XRP and hope that this litigation -- however disruptive in the short term -- will bring clarity to the appropriate treatment of cryptocurrencies under the US securities laws.

Tags:

COMMUNITY

SEC

XRP

XRP LEDGER

RIPPLE

CRYPTOCURRENCY

[HAL1000 21]

Hopefully the NEW SEC chairman will have to pay attention to himself and listen to his own words

 

[Julian_Williams 12,932]

42 minutes ago, HAL1000 said:

Hopefully the NEW SEC chairman will have to pay attention to himself and listen to his own words

 

He is engaging with the need for the new tech, and engaging with the public too.  In this clip he fails to "get it" entirely, for instance the fluctuation in 3 seconds in an XRapid transaction need to be compared with the fluctuation over several days for transferring using correspondence banking model. 

Basically I like this man.  

[Barefooter 12]

The Gatehub announcement seems like a common sense approach to me.  Nobody has been convicted of any wrong doing yet.

I saw that video yesterday and this new SEC chair has got to be better than Jay Clayton!

[wogojump 284]

It is crazy how uncommon it is for organizations to actually understand what securities are, analyze the situation, and provide logical responses.  It seems like most other exchanges and the SEC have no idea what they are doing.  The SEC may be able to get Ripple on them treating XRP like a investment contract to fund their business and executive's personal wealth, otherwise XRP should not be considered a security.

 

We know Trump talked with Jay Clayton on the lawsuit, before he retired.  As well as Trump not being in a healthy mindset with all the conspiracy theories, impeachments, inciting riots, and lawsuits coming up against him.  Other than Trump, its bazaar so many other parties like the SEC and other exchanges don't understand what securities are.  As well as taking drastic actions, that make no logical sense.

 

The crypto industries needs more organization and politicians pro-actively involved, like GateHub..  A lot, more progress will be made when parties like this are able to help make decisions.

Edited January 13 by wogojump

[jargoman 850]

But gatehub doesn't sell XRP, nor do they hold users XRP. 

[joe91 91]

1 hour ago, jargoman said:

But gatehub doesn't sell XRP, nor do they hold users XRP. 

But, they do have a hosted XRP wallet i guess?! Don’t They!? 

[Karl 364]

It is a shame that other market participants are not behaving in such an exemplary manner. The case has not even been opened, but some of them are already burning books.

Shoot first, then ask - such a typical Wild West mentality.

[bellbright 24]

7 hours ago, VanGogh said:

https://gatehub.net/blog/announcement-to-xrp-holders/

We have carefully reviewed the complaint that the SEC filed in federal district court in New York alleging Ripple’s XRP should have been registered as a “security” upon its creation in 2012, more than eight years ago, and charging that Ripple and its senior managers later engaged in market manipulation and self-dealing. See reference here.

Please be advised that GateHub Ltd. will continue listing XRP until the SEC’s complaint against Ripple is adjudicated and a final decision entered that XRP is properly classified as a “security,” or until we receive a cease-and-desist notice from the SEC.

Here’s why

We have never believed that XRP is a “security” under the prevailing “Howey” test in the US, and regard XRP primarily as a “utility” token whose value is based on its use in payments and foreign exchange.  Nor have we personally witnessed any improper market conduct by Ripple Labs or its senior officers.  Our own business decision to list XRP -- and our attempt to build a payments business using XRP on the XRP Ledger -- reflects this good faith belief.  We would not have proceeded to build a business within the XRP Ledger ecosystem if the SEC had issued any guidance whatsoever that XRP would be treated as an unregistered “security.” And we would have refused to do business with Ripple or anyone at Ripple who, in our judgment, engaged in fraudulent market practices.

Shortly after its development by Ripple’s founders in 2012, the software that drives the XRP Ledger was open-sourced and made available to developers free of charge, and is hosted on numerous third-party servers around the world.  Similarly, the client-side software can be downloaded and used by end users on their own mobile phones or computers.  

The point 

This is a “distributed” blockchain technology, and in theory, Ripple Labs could close tomorrow, but the ledger – and the recording of XRP transactions onto the ledger through the consensus process – would continue.   If Ripple and/or its senior executives defrauded individual investors, they should be subject to appropriate enforcement actions, and be forced to disgorge any ill-gotten gains.  But that is a far cry from an action by the SEC classifying XRP as a “security,” with potentially catastrophic consequences for individual investors, who did nothing wrong.

We remain optimistic about the future of XRP and hope that this litigation -- however disruptive in the short term -- will bring clarity to the appropriate treatment of cryptocurrencies under the US securities laws.

Tags:

COMMUNITY

SEC

XRP

XRP LEDGER

RIPPLE

CRYPTOCURRENCY

It is common sense Ripple is not a security but a digital asset or a digital currency.

[Babelly 801]

1 minute ago, bellbright said:

It is common sense Ripple is not a security but a digital asset or a digital currency.

Ripple is a private company and based on your posts you need to do more research.  This will only benefit you

[Karl 364]

Coinbase, Grayscale, Blockchain.com, OKcoin, etc..

A list of shame. However, they have never been particularly xrp friendly either.

[AJXRP 24]

2 hours ago, jargoman said:

But gatehub doesn't sell XRP, nor do they hold users XRP. 

Gatehub sell XRP and run an exchange on which you can buy XRP. I have bought all of my XRP on there. And have held XRP on there at different times, before transferring to a hard wallet. 

[Archbob 1,057]

7 hours ago, HAL1000 said:

Hopefully the NEW SEC chairman will have to pay attention to himself and listen to his own words

 

You do realize in that video when a student asks him if XRP is a security of not. He outright says he thinks its an unregistered security, right?

[Begofend 22]

No surprise, gatehub is pretty much ripple labs, gatehub took over the original ripple wallets from rippletrade website all those years ago. Uphold also are another of ripples close friends so no surprise there also.

[aavkk 2,526]

29 minutes ago, Archbob said:

You do realize in that video when a student asks him if XRP is a security of not. He outright says he thinks its an unregistered security, right?

I'm reasonably sure this video here was 1-2 years AFTER his original comments about XRP and ETH likely being securities.  I watched this clip again and nowhere in this video does he talk about securities.  What he does talk about is XRapid specifically, which once you understand that XRP has utility as a bridge currency its much harder to view it as a security.  It seems to me his views have very likely evolved as XRP has become more useful as well as Ripple having a lower controlling stake of the XRP ledger.  You've been here a while and likely recall David Schwartz mentioning in early 2018 that his primary goal is to further decentralize Ripple from XRP as it pertains to the UNL which they have done.