OVERVIEW

🥳 The XRP vs. SEC Case Is Over! 🥳 

30 minutes before I’m ready to send this off, news about the SEC vs. Ripple case comes out - glorious. 🥂 

In today’s Litepaper, we’re looking at the ruling from Judge Torres in this four years long FUD that finally has a conclusion.

Also on deck: a short history of the SEC vs. Ripple case and your crypto news in three sentences. 📰

Before we dive in, here’s today’s crypto market heatmap:

And here’s a look at crypto’s total and altcoin market cap YTD:

XRP
It’s Over 🔚 

I’ll try and make this as painless as possible. If you are unfamiliar with the significance of this case, there’s a short history of this case below. 📖 

If you’re wondering why $XRP is pushing towards +30% despite having to pay a $125 million fine, there are two big reasons.

1. This cloud of FUD over the crypto market and whether XRP (and, by de facto status, the rest of the market) is a security is over.

2. $125 million is a tiny amount of the $2 billion the SEC originally wanted.

What Ripple Has To Do

• Ripple Labs, Inc. is permanently restrained from violating Section 5 of the Securities Act (basically, follow securities laws).

• Ripple is ordered to pay a civil penalty of $125,035,150 within 30 days. 😱 

• The SEC may propose a plan to distribute the collected funds, subject to Court approval.

• Ripple must pay post-judgment interest on any overdue amounts.

• Ripple cannot reduce compensatory damages in related lawsuits by offsetting them with this penalty.

For those of us who have been following this case, the fine and injunction are a big ol’ nothing burger. What’s most important is the conclusion of the case.

You can read/find the ruling here. 👀 

XRP
SEC vs. Ripple - A Short History 📙 

Forgot what happened up until today’s date? That’s ok. It’s been going on for nearly four years. But the SEC vs. Ripple case is considered the first shot fired in the SEC’s war against crypto. 🔫 

It was the first volley on crypto’s Ft. Sumter, the assassination of crypto’s Archduke Franz Ferdinand, and the first shots at Lexington and Concord. And it’s over.

The following is a short summary of what happened before today’s victory.

2013-2020: Ripple's Rise

• 2013: Ripple Labs started selling $XRP, claiming it was a digital currency set to change cross-border payments. 💵 

• 2015: Ripple settled with the U.S. Department of Justice for, let’s say, some “oversights” in compliance. Apparently, playing nice with Uncle Sam has its costs.

• 2017-2020: Ripple cozied up to banks and financial institutions, pushing XRP as the next big thing in cross-border transactions.

December 2020: The SEC Crashes the Party

• December 22, 2020: The SEC dropped a lawsuit bombshell on Ripple Labs and its executives, Brad Garlinghouse and Chris Larsen, claiming they raised over $1.3 billion by selling unregistered securities. 😠 

• By the way - this was literally the last thing Jay Clayton (Trump’s SEC Chairman) did before handing over the reins to Gensler. I mean, there are transition pranks, and then there’s being an asshole.

2021: Legal Battles and Market Chaos

• January 2021: Ripple's defense team swung back, arguing that the SEC left everyone guessing about XRP’s status for years. Exchanges started dropping XRP like a bad habit. 🫳 

• March 2021: Ripple scored a win, getting a peek into SEC documents about $BTC and $ETH, which the SEC didn’t treat as securities. Suddenly, Ripple wasn’t feeling so alone.

• April 2021: The SEC tried to snoop into Ripple execs’ personal finances. The court said, "Not so fast," limiting the SEC's access.

2022: Ripple Rallies

• January 2022: Ripple’s legal team gained permission to depose a former SEC official, William Hinman, who famously declared in a 2018 speech that Ethereum was not a security. These "Hinman Documents" became a critical piece of evidence in Ripple's defense. 🤺 

• April 2022: Ripple argued the SEC failed to provide fair notice that XRP was a security, pointing to Hinman's remarks as evidence of the SEC's inconsistent messaging. Judge Torres ruled against the fair notice argument.

• July 2022: Both Ripple and the SEC filed motions for summary judgment, asking the court to make a decision without going to trial. I remember thinking - oh, good, maybe this will be done soon. Nope.

2023: The Plot Thickens

• March 2023: Ripple found some friends (amici curiae) who backed them, arguing the SEC’s actions were bad news for the whole crypto scene. 🧑‍🤝‍🧑 

• July 2023: The court ruled that XRP wasn't a security when sold to regular folks. But wait—sales to institutions? Yep, there were some problems there.

And there you have it - about as summarized a history of the SEC vs. Ripple case as I could make. ✅ 

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NEWS
Crypto News In Three Sentences 📰

💡 Morgan Stanley Unleashes Bitcoin ETFs for Wealthy Clients 

Morgan Stanley ($MS) is opening the $BTC ETF floodgates for its high-net-worth clients, offering them a taste of crypto with BlackRock’s and Fidelity’s top picks. With Bitcoin interest surging, this move aligns Morgan Stanley with the growing trend of institutional crypto acceptance. It's a big win for Bitcoin bulls who have at least $1.5 million to play with. Crypto Economy.

📊 BlackRock and Nasdaq Bet Big on Ethereum ETFs with Options Play 

BlackRock ($BLK) and Nasdaq are upping the ante, filing with the SEC to add options to their $ETH ETF lineup. This could give investors more ways to ride the Ethereum wave, providing a cheaper route to get in on the action. The SEC’s decision is still pending, but if approved, it’s another step toward bringing Ethereum further into the financial mainstream. coincu.

🐲 China's Ethereum Purge: $2 Billion on the Move

Word on the blockchain is that China is offloading 789,533 ETH from wallets tied to the infamous PlusToken Ponzi. With $2 billion worth of Ethereum on the move, crypto markets are bracing for impact as Chinese authorities seem eager to cash in on their crypto stash. CoinPedia.

🛡️ Grayscale Rolls Out Bittensor and Sui Crypto Trusts

Grayscale is expanding its crypto empire with two new trusts focusing on Bittensor's $TAOAI and Sui’s $SUI tokens. This caters to investors looking for the next big thing in decentralized AI and scalable blockchain applications. If you're into emerging tech and shiny new tokens, Grayscale's got your back with these niche crypto investments. AltcoinBuzz.

💰 CryptoPunks Dominate NFT Sales, Again

CryptoPunks are back on top, raking in $663,757 in NFT sales and proving they’re still the OGs of the Ethereum blockchain. Meanwhile, Bitcoin-based NodeMonkes are nipping at their heels, reminding everyone that Bitcoin’s got game in the NFT arena too. With CryptoPunks holding court and new challengers emerging, the NFT scene is buzzing louder than ever. Forkast.

Links That Don’t Suck 🔗

🇯🇵 BoJ says ‘will not hike borrowing costs’, crypto in relief?

🕹️ Warner Bros looking to sell off games division, report claims

📍 How DePin is shaping the future of crypto — Polygon Labs exec

🤯 Michael Saylor announces he owns $1 billion in Bitcoin personally

🤖 Meet Figure 02 — the AI-powered robot coming for the jobs humans don’t want

🍾 A 19th-century shipwreck is filled with Champagne bottles, and Sweden won’t allow anyone a sip

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