So I look at your notes today and you Suggest the worst is behind us what Makes you think that this is largely Going unnoticed by so many people the Thing that we're watching is the Vick Spike to 60 before we get to Tom Lee Let's talk about the elephant in the Room crypto's about to break through in A major way the SEC Wanted 2 billion the SEC gets a fraction of that now we're Seeing them subpoena others we Originally reported the news to you Yesterday there is more to the story Today Ripple's Chief legal officer comes Clean this is what you should be taking Away from the Ripple versus SEC verdict Ripple when it was first sued by the SEC Almost four years ago said that we were Going to defend this case not only on Our own behalf but on behalf of the Entire crypto industry this Administration with this SEC under this Chair has clearly taken an anti-crypto Stance I think they lost on everything That was important to them trying to Establish that a to in itself in this Case xrp can be considered a security Was soundly rejected by the court and What the court said is a token is never A security in and of itself just like a Bar of gold is never a security it can Certainly package Commodities or virtual Currencies up and sell them as Securities but they're not Securities in
Enough themselves and that's the core Clarity that we sought in this case and The establishing that xrp is not in and Up it's self the security is the law of The land what the judge did find is that Certain historical sales uh beginning uh Around 2015 the way that those sales were Packaged with sophisticated third Parties they should have been registered Under the Securities laws and that's the Piece of the the decision that we Respect the judge rejected a $2 billion Ask from the SEC because she found that Ripple didn't act recklessly we did Didn't act with any intention to defraud Anybody and in fact there were no Victims the counterparties to those Transactions suffered no Financial loss At all but staying true to the law since There was a technical violation of the Failure to register those historical Sales she did impose a fine of $125 Million that's something that we will Pay with cash off of our balance sheet And we look forward to moving forward And hopefully this turns a page not only For ripple but also hopefully finally This Administration will turn the page On their war on crypto and hit the reset Button so are we finally done well Obviously we're not done until we see a Regime change but now that the dust is Settling on another major SEC loss what
Comes next for crypto Ripple when we Were first sued in December of 2020 we Said look we're going to defend this Case not only because we think the Allegations that are being made against Our company are wrong-minded and we Think ultimately they're not going to be Able to survive judicial scrutiny but We're going to defend it on behalf of The entire crypto industry because we Knew that we were the tip of the sword We knew that the SEC would start with Ripple and then start working their way Down and bring litigation and lawsuits And enforcement actions against the rest Of the industry I'm not sure everyone Believed us four years ago everyone Believes us now because that's exactly The Playbook that the SEC has sought to Advance and what do we now know we know Through our case the court has found That the SEC was not engaging in a Faithful allegiance to the law that's a Quote we know in the Bitcoin ETF case a Another Court found that the SEC was Acting arbitrarily and capriciously we Know that there was a federal judge in Utah that sanction the SEC for uh Engaging in outright fraudulent Misrepresentations to the court so this This war on crypto has really skewed the Sec's core Mission and skewed their Commitment to kind of stick to their Lanes in their jurisdiction and what we
Need as a country is to hit the reset Button and what we really should be Focusing on is creating clear laws rules And regulations so this industry can Thrive in the United States St just as It is thriving outside of the United States so following that here Michael Sailor perfectly explains what everybody Is starting to realize about Bitcoin and What the future looks like for crypto I've never seen Michael sailor this Excited Bitcoin is a solution to Everybody's problem investors are Worried about regulation taxes towards An antitrust economists are worried About the deficit in the debt Individuals want to deal with inflation And they're worried about opport Companies can't compete with mega corpse Those who understand Bitcoin buy Bitcoin Those who don't criticize Bitcoin with Bitcoin individuals can outrun the Inflation investors can beat the market Corporations can outgrow the competition And countries can Revitalize their Economies and boost their currencies by Tapping into digital Capital all great Empires are built on productive property That you can defend and uh the L bill is Our Louisiana moment uh you know one There was a time when everybody moved to The new world and buying the new world Like Louisiana or Alaska was a good idea What we have right now is a race to own
Cyers space the future is digital Bitcoin is digital if you're worried About the US dollar as the reserve Currency right what what are people Going to buy when they sell the dollar They're going to buy Bitcoin and so you Should go buy the Bitcoin and and wait Because hundreds of trillions of dollars Of capital from all around the world are Going to flow into cyberspace to the Bitcoin Network before we get to Tom Lee Let's take a moment to thank today's Sponsor leading crypto company in the Space somnia somnia is a 300,000 plus TPS evm layer 1 with interoperability Protocols to unify metaverses gaming Nfts and social platforms creating a Seamless fully onchain virtual Society You can participate insomnia's Playground now you can jump into this Jump into their metaverse they are in Their season 2 part three you can Participate in the somnia dream hunt They have a prize pool of $10,000 usdt You would love this if you're a Metaverse Enthusiast nft collector web3 Gamer a normie or part of the broader Blockchain community at large Participate insomnia's Playground now And start farming points the somnia Playground provides you the content Creator with a Sandbox environment Allowing you to test your ideas and Creations without the need to deploy
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Won't have Ripple effects because we Know there's some trapped bulls and you Know there's still some nervousness Around Iran and how much of this Yen Carry trade has to unwind but I think The worst of the selling pressure is Behind us how how do we know that we had Just a a growth Scare and not something more dramatic to Come Tom never mind the unwind of the Carry trade and no one really knows Whether that's over either but when you Think about those two events what does It make you think about where we could Go moving forward well I think investors When it comes to the growth scare side Have something they can check every week Which is weekly jobless claims because That's what was a positive surprise on Thursday and a lot of it came from Texas Texas had a big drop um in weekly claims Week over week the fact that markets Reacted so positively Thursday to that Jobless claims number puts me in the Camp that that's one of the big drivers Because we had a better than expected Claims number and then the market popped I think the growth scare is what's on Investors minds and next Thursday They'll get another weekly claims number And if that's also equally improving or Stable I think it's going to give people A lot more Conviction what about the unwind of the
Carry trade I mean there's no real tell As to whether that's run its course and That seems to be you know the obvious Catalyst at the beginning of the week For positioning being well off sides and It just needed to correct itself self Has it Finished uh Scott that's a great Question nobody knows how big the that Carry trade could be I think there there Is a large insurance industry Participation in that and I did speak to Some insurance Executives this past week As their view is there's a lot of Financial institutions that actually Implemented this trade but if it unwinds In an orderly way it's not disruptive It's just that if if you have weeks or Days like Monday or or last week the end Of last week that's very disorderly and That that gets very expensive because These insurance companies have to take Off these Hedges and then they suddenly Have unhedged carry trades yes by all Accounts this recent price crash was Just a bull trap if you sold under $60,000 I'm sorry I wish you would have Been following us I wish you would have Seen this first Bitcoin is a is a uh Basically a trap let's check out the Price action this week it's been very Vol this is actually a 3-month look and Uh you can see we just had this dip uh All the way down to about 48,000 there
And for me 60,000 has been the important Level to watch and I'm going to zoom out Here I'm going to put a year- to-day Chart on here and here's the 60,000 Level we've di below it once twice and This is a third time each time going a Little bit below but then climbing back Above 60,000 these are all false Breakdowns you can call them bear traps Um and it costs Traders a a lot of money And peace of mind but never nevertheless That's what's happening but another way To look at it it's just in a little bit Of a flag here from a sustained up move That's a one-year look and it's even More apparent on the five years so this Is just a tiny little flag here in the Grand scheme of things but it's painful On a day-to-day basis now when I was Watching I've been following fund flows As well we have all these new Bitcoin Spot Bitcoin ETFs and not only Bitcoin But ether and we've seen some really Positive movements this week I think Overall the sector was uh lost about 250 Million uh dollar or $250 billion but When you take into consideration that a Lot of that was out of the grayscale Entities uh you really you get a Positive net flow for Bitcoin so I think It's positive that we have in the midst Of all this terminal turmoil we still Have a lot of institutional and Retail Interest in these funds hey make sure
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