Riding the Ripple: Gensler's Misfire and the Unstoppable Rise of XRP
Abraham George Crypto Musings
When the late Palestinian Liberation Organization leader, Yasser Arafat, was alive, he had a notorious habit: carrying a pistol around his waist. As the saying went in the Middle East, whenever Arafat drew his gun, he invariably shot himself in the foot. Enter Gary Gensler, the man seemingly keen to follow in Arafat’s footsteps.
Unwarranted doesn’t begin to describe Gensler’s recent move against Coinbase. Now, six legal scholars from top universities, specialists in securities law, have filed an amicus brief in favor of Coinbase. And, as icing on the cake, Congresswoman Cynthia Lummis has added her own amicus, backing Coinbase’s motion to dismiss the SEC’s suit.
Gensler? He’s playing sheriff in a town that didn't ask for one.
The SEC, too, is floundering. They've filed for an “interlocutory appeal” regarding Judge Torres' ruling in the XRP case. They’ve ceded ground, no longer arguing that XRP isn’t a security. They want a mulligan on the first half of the case—a ‘redo’ sparked by Torres’ ruling, which has seemingly backed the SEC into an uncomfortable corner.
Judge Torres’ ruling? A nuanced distinction. Some of Ripple’s XRP sales? Above board, owing to a bidding process. Direct sales to institutions, however, fall squarely under securities laws. The SEC is chewing on that, hard.
Their appeal might get a hearing, but the wheels of justice turn slowly—expect another 12 to 24 months. A timeline sure to have the SEC grinding its teeth.
As for Ripple, they’ve yet to file their rebuttal. But one imagines Ripple’s Chief Legal Officer, Stu Alderoty, is drafting a counterargument as sharp as a tack. Do yourself a favor: watch Alderoty’s video response to Gensler’s TV interviews. It’s a masterclass in confident, comedic rebuttal.
https://twitter.com/s_alderoty/status/1686027820533735424?s=48&t=O6MA_zkmOk3GMRB0R2W7Gg
This SEC filing might just be a blessing in disguise for XRP and the broader industry. XRP remains the lone crypto with clear regulatory standing in the U.S.—Bitcoin and Ethereum merely have a ‘not-a-security’ nod from the SEC and CFTC. It’s a world of difference.
And as we dig deeper into XRP, ‘Ethgate’ inches closer to full exposure. It's high time for justice to come knocking for the likes of Jay Clayton and Bill Hinman. An SEC investigation? Overdue.
Meanwhile, Ripple is signing contracts at a breakneck pace, both domestically and internationally. Notably, Ripple recently joined the ISDA—an association that boasts members like JP Morgan and Goldman Sachs, and plays a major role in the $1.2 quadrillion derivatives market. Larry Fink? He’s playing 4D chess, no doubt.
Other wins for Ripple include joining the BIS Cross-Border Payments Task Force—a significant nod from the ‘central bank of central banks’.
Even Gemini, the crypto exchange which was once as cold as ice toward Ripple, has done a full 180. With XRP’s listing, they've openly taunted the SEC and Gensler. On listing day, XRP prices briefly skyrocketed to $50 on their platform—whether a marketing stunt or a glitch, Gemini is clearly courting XRP customers with gusto.
Major asset managers, including BlackRock and Fidelity, are lining up for a Bitcoin spot ETF with the SEC. Approval seems inevitable, and when it comes, the crypto industry will ascend to a new level of legitimacy. Picture this: a Ripple ETF. Not so far-fetched, considering Ripple’s unique regulatory clarity.
And for a cherry on top: the Reserve Bank of New Zealand is in talks with Ripple about crafting CBDCs using the XRP Ledger.
This isn't financial advice, but I’m doubling down on XRP. Invest like a bull, sleep like a bear.
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Abraham George is a seasoned investment manager with more than 40 years of experience in trading & investment and multi-billion dollar portfolio management spanning diverse environments like banks (HSBC, ADCB), sovereign wealth fund (ADIA), a royal family office, and a hedge fund.