On Friday (September 30), entrepreneur David Gokhshtein, who is Founder and Chairman of crypto-focused media outlet Gokhshtein Media, said that those who keep dumping on XRP are inadvertently helping to grow the XRP community.
This was not the first time that Gokhshtein had tweeted about XRP. For example, on September 28, he tweeted:
Before we go any further, it is worth mentioning that on 14 June 2018, William Hinman, the director of the Division of Corporation Finance at the U.S. Securities and Exchange Commission (“SEC”), made a speech at Yahoo Finance’s “All Markets Summit: Crypto” one-day event in San Francisco, California. The speech was about how the SEC plans to use the “Howey Test” to determine whether a digital asset should be considered a security or not. The only two cryptocurrencies Hinman mentioned by name were Bitcoin (BTC) and Ether (ETH), neither of which he said should be considered as securities:
“And so, when I look at Bitcoin today, I do not see a central third party whose efforts are a key determining factor in the enterprise. The network on which Bitcoin functions is operational and appears to have been decentralized for some time, perhaps from inception. Applying the disclosure regime of the federal securities laws to the offer and resale of Bitcoin would seem to add little value...
“And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value.“
As you probably already know, on 22 December 2020, the SEC announced that it had “filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.” Essentially, the SEC is arguing that XRP is a security under U.S. federal securities laws.
American lawyer John Deaton (“@JohnEDeaton1” on Twitter), the owner of the Deaton Law Firm (which is based in East Providence, Rhode Island), has been closely following and commentating on the SEC’s lawsuit against Ripple. Deaton is also the founder of the website CryptoLaw, which “was launched in 2021 to be a clearinghouse of information, news and analysis on key U.S. legal and regulatory developments for digital asset holders”, as well as the host of the YouTube channel “CryptoLaw”.
On September 29, CryptoLaw announced that U.S. District Judge Hon. Analisa Torres had overruled all of the SEC’s objections about releasing emails related to Hinman’s famous speech to Ripple Labs and that she had found that Magistrate Judge Hon. Sarah Netburn was correct in ordering the SEC to hand over these emails.
According to data by TradingView, on crypto exchange Bitstamp, aroud 7:45 p.m. UTC on September 29 when the news of this potentially important victory by Ripple’s legal team came out, the price of $XRP surged from $0.4372 to $0.4988 — which is a gain of over 14% — in less than two hours.
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