Ripple V SEC: Settled Dec 15th says Charles Hoskinson

[HAL1000]

 

[JASCoder]

One way or the other ?? !!!

If the judge finds for RL and totally exonerates them and the directors,
how would that be "catastrophic" for the industry ?? 

#confused 

[HAL1000]

2 hours ago, JASCoder said:

One way or the other ?? !!!

If the judge finds for RL and totally exonerates them and the directors,
how would that be "catastrophic" for the industry ?? 

#confused 

I don't think there is any chance of this being a judges decision at this time, he is more likely, talking about a settlement, that allows only Ripple to carry on with it's business, whilst almost every other crypto would still be in some kind of legal limbo, which would be game set and match for Ripple. Which from every other cryptos perspective would be a bit of a disaster, it would be hard to compete with Ripple and XRP at least in the short term, especially in the USA.

Keep in mind this little gathering....

Who's the bald headed guy - David Solomon - the CEO of Goldman Sachs - all the worlds a stage!.

Maybe Charles H was there or one of his buddies, maybe somebody got drunk and things where said etc. It's a rather exclusive club and CH could very well know something WE don't.

Edited December 11, 2022 by HAL1000

[Guest]

3 hours ago, JASCoder said:

One way or the other ?? !!!

If the judge finds for RL and totally exonerates them and the directors,
how would that be "catastrophic" for the industry ?? 

#confused 

This is a rumour of a rumour. Hearsay. I wouldn’t put much weight into it. In terms of what he might have meant, I have an idea.

1. XRPL didn’t have an ICO. XRPL was fully functional before launch.
2. At some point, Ripple became a minority in the dUNL.
3. At some point, they stopped selling to public markets directly and only to OTCs.
4. Holdings have been in Escrow since 2017/2018 (don’t remember exactly when)
5. Finally this year they have <50% of the holdings (though I don’t see why that matters).

Let’s assume that there is a settlement offer and that this is how it looks.

• SEC draws a line somewhere between #2 and #5. Ripple agrees to that line.
• All public sales before that are treated as sale of investment contracts and Ripple pays fines for that. Ripple and the SEC go to the Judge Torres to decide if non-US sales should be considered for fines.
• Going forward, Ripple agrees to a Rule 144 compliant distribution until their holdings go to less than a certain % (e.g. 5%). 
• Secondary sales/retail holders before settlement date get an exception (as indicated by the SEC as a possibility in filings) because it’s impossible to track them all anyway. 
• Secondary sales post settlement are automatically compliant due to Rule 144.
• Ripple eventually goes IPO.

The question is if Ripple agrees to a Rule 144 compliant distribution. I don’t know the answer to that and the implications for XRP. But it could be disastrous for many (most) blockchains.

Look at the conditions of rule 144 - https://www.sec.gov/reportspubs/investor-publications/investorpubsrule144htm.html, particularly holding period, trading volume formula, etc. Ripple is already following most of this. It’ll be fine. XRPL will be fine. Will the rest of the ecosystem ? 

I’ve mentioned it a few times before. Clarity for XRPL is not necessarily going to give clarity to rest of crypto.

This is what Charles probably fears the most. 

PoS is easy to be treated as a security per today’s laws. Staking your tokens to get voting rights + in return for more tokens. That binding probably creates a common enterprise AND expectation of profit AND a post sale obligation. Post sale obligation to whom? I don’t know. If this doesn’t go to the Judge because of the settlement, we have to wait for another lawsuit with some other blockchain before this argument is brought up and settled.

An ICO is a straight up sales of securities. The rest of the ecosystem needs formal ratification of Hinman speech and/or legislation by Congress. XRPL has unique circumstances that may give both parties and the holders a way out.

It doesn’t matter if PoW is regulated away or not. It’ll never scale.

Edited December 11, 2022 by Ripley

[JASCoder]

One take from Stefan Huber… 

 

[JASCoder]

One more insightful comment 

 

[VanHasen]

5 hours ago, JASCoder said:

One way or the other ?? !!!

If the judge finds for RL and totally exonerates them and the directors,
how would that be "catastrophic" for the industry ?? 

#confused 

No way torres rules 2 weeks after SJ is fully briefed and leaks it beforehand. 

If the case ends on dec 15 (its not going to happen IMO) it has to be settlement. The timing, the leverage on both sides..... It just makes more sense, also more likely to get leaked than a judges decision

Imagine the rumors would be true and this case indeed would settle on dec 15, i can already hear hoskinson and crypto as a whole yelling at ripple for creating a regulatory monopoly for xrp while the rest sits in the dark... How ironic

[princesultan]

I would be happy this settles on the 15th, but that day will likely come and go with nothing to show for it

[DougDog]

in the wild wild unregulated west that is crypto if this was even remotly true , we would have seen the price go up due to insider trading. I expect this to be a big nothing burger. Just wait until march for the real thing

[HAL1000]

2 hours ago, DougDog said:

in the wild wild unregulated west that is crypto if this was even remotly true , we would have seen the price go up due to insider trading. I expect this to be a big nothing burger. Just wait until march for the real thing

The big boys use OTC not exchanges, which would not spike the price.

[VanHasen]

5 hours ago, princesultan said:

I would be happy this settles on the 15th, but that day will likely come and go with nothing to show for it

Wait for EleanorTerretts obligatory "my sources at ripple tell me nothing new in this case, awaiting judges decision..." tweet, as if they would tell her even the rumors were true... Lol

[HAL1000]

[JASCoder]

7 hours ago, VanHasen said:

Wait for EleanorTerretts obligatory "my sources at ripple tell me nothing new in this case, awaiting judges decision..." tweet, as if they would tell her even the rumors were true... Lol

Eleanor says “it’s not true” 

 

[swift_post]

9 hours ago, DougDog said:

in the wild wild unregulated west that is crypto if this was even remotly true , we would have seen the price go up due to insider trading. I expect this to be a big nothing burger. Just wait until march for the real thing

agree, but why was charles so explicit about the date? Why not just say 'if they should settle..." ? I think someone has told him something....whether that person actually knew anything is another matter.

[Alluvial]

On 12/10/2022 at 5:01 PM, JASCoder said:

One way or the other ?? !!!

If the judge finds for RL and totally exonerates them and the directors,
how would that be "catastrophic" for the industry ?? 

#confused 

I wonder if he means that if Ripple agrees to settle, which would likely mean that it agrees in effect that early sales of xrp were securities transactions, then the SEC could and would go after a lot of other crypto such as Cardano.  No one really has the financial ability to take this all the way like Ripple does (I don't think).  If I were the SEC and wanted to continue suing crypto companies, etc., I would settle with Ripple.  The SEC takes a big chance by fighting this case to the Second Circuit and possibly the Supreme Court.  In other words, a lot of crypto companies are relying on this Ripple case to rein in the SEC.  If the case settles, it would be good for Ripple, but just about all the other cryptos companies, foundations, etc out there would be in trouble and at significant risk of being sued.