TL;DR
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ICYMI: The SEC claims that the XRP token is a security (think: a stock) and should be regulated as such. Ripple begs to differ.
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It’s a big deal! Because if the SEC can prove this with XRP, they will use the legal precedent to tear through the US crypto industry.
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A transcript of a speech given by former SEC Director William Hinman in 2018 has just been made public, influencing public perception of the case.
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Hinman did not consider ETH a security, which is what Ethereum suggested (and perhaps similar tokens) should not are regulated by the SEC.
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As a result, a slew of speculators bought XRP — pushing the price up 6% (or about $1.5 billion) in a matter of hours, before tumbling back down.
Full story
What’s the longest fistfight you’ve ever experienced?
For us, it’s one that started in 2020, between Ripple (XRP) and the SEC.
ICYMI: The SEC claims that the XRP token is a security (think: a stock) and should be regulated as such. Ripple begs to differ.
It’s a big deal! Because if the SEC can prove this with XRP, they will use the legal precedent to tear through the US crypto industry.
And yesterday there was a huge revelation in the case.
…or at least a huge revelation that has affected the public’s perception of the case.
This is what happened:
Former SEC Director William Hinman gave a speech in 2018 – the contents of which the SEC has tried really difficult suppress.
In the speech, Hinman explicitly outlined the following:
“Based on my understanding of the current state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.”
Translation: Hinman did not consider ETH a security, which is what Ethereum suggested (and perhaps similar tokens) should not are regulated by the SEC.
The dots connecting everyone in the crypto community back then were:
Hinman didn’t feel the need to regulate ETH → this weakens the SEC’s case against Ripple → if Ripple wins, the XRP token will likely increase in value.
As a result of these assumptions, a slew of speculators bought XRP, driving the price up 6% (or about $1.5 billion) in a matter of hours.
The bad news? What goes up must come down: