Earlier this week, the pseudonymous host of popular crypto market commentary show Coin Bureau shared his latest thoughts on XRP.<\/p>\n
According to a report by The Daily Hodl published on July 21, here is what the Coin Bureau had to say about XRP in YouTube video released on July 18:<\/p>\n
\u201cA couple of other stories also caught my eye, one relevant to XRP holders. Apparently, Jed McCaleb has finally finished selling all his XRP.\u00a0<\/em><\/p>\n \u201cFor those of you unfamiliar, Jed McCaleb was one of the original founders of Ripple. He left a few years ago to co-found Stellar, which is obviously a rival platform to Ripple. A big bone of contention since then has been Jed\u2019s allocation of XRP. He was allocated around 9 billion coins, which is over 18.5% of XRP\u2019s total supply and he\u2019s basically been selling it off.\u00a0<\/em><\/p>\n \u201cHe\u2019s been kind of under an agreement with Ripple not to dump it all at one point, but he has basically been selling it off over the last few years, and apparently, he has finally finished doing that. No XRP has pumped along with the rest of the market, not massively because we are still in a bear market, like it or not, but this is certainly good news for XRP in the long term.<\/em>..<\/p>\n \u201cAlso, of course, coupled with the good news that XRP had last week when it scored a big victory in its case against the SEC. That case is still ongoing, it\u2019s not going to be resolved anytime soon, but this is two really good bits of good news for both Ripple and XRP holders.<\/em>\u201c<\/p>\n https:\/\/youtube.com\/watch?v=_8oXLSyVYqo%3Ffeature%3Doembed<\/p>\n With regard to the second piece of news he mentioned, as you may remember, on 22 December 2020, the U.S. Securities and Exchange Commission (SEC)\u00a0announced\u00a0that it had \u201cfiled an action against Ripple Labs\u00a0Inc. 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.\u201d\u00a0Essentially, the SEC is arguing that XRP is a security under U.S. federal securities laws.<\/p>\n On July 12,\u00a0Sarah Netburn,\u00a0a U.S. Magistrate\u00a0Judge\u00a0for the\u00a0U.S. District Court for the Southern District of New York,\u00a0denied\u00a0an important motion by the SEC in their lawsuit against Ripple.<\/p>\n In its letter motion, the SEC argued that \u201cinternal documents\u201d related to June 2018 speech by William Hinman are protected by \u201cattorney \u2013 client privilege\u201d.<\/p>\n On 14 June 2018, William Hinman, then director of the Division of Corporation Finance at the SEC, made a\u00a0speech\u00a0at Yahoo Finance\u2019s\u00a0\u201cAll Markets Summit: Crypto\u201d\u00a0one-day event in San Francisco, California. The speech was about how the SEC plans to use the\u00a0\u201cHowey Test\u201d\u00a0to determine\u00a0whether 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:<\/p>\n \u201cAnd 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.[9]<\/em><\/p>\n \u201cAnd 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.<\/em>\u201c<\/p>\n This is what Magistrate Judge\u00a0Hon. Sarah\u00a0Netburn said about the attorney-client relationship in her ruling:<\/p>\n \u201cDefendants argue that Hinman is not a \u2018client\u2019 of the SEC\u2019s lawyers for purposes of advice related to an outside activity such as the Speech. The SEC retorts that the Speech had to have been developed as part of Hinman\u2019s official duties because the SEC staff who provided edits and feedback to the Speech were prohibited from using agency time and resources to provide input on a \u2018purely personal errand.\u2019 \u2026<\/em><\/p>\n \u201cAt oral argument, the SEC emphasized that the information Hinman received from SEC staff while drafting and editing the Speech would not have been available to him as a private citizen; it was only in the context of his employment that he was able to solicit the edits and feedback he did.<\/em><\/p>\n \u201cThis question is made unnecessarily complicated by the SEC\u2019 s litigation tactics . The SEC has distanced itself from the Speech to avoid discovery and sought to preclude Hinman\u2019s deposition on the grounds that whatever he said in the Speech, it had nothing to do with the SEC\u2019s position.<\/em><\/p>\n