Mark Another ‘Win’ For Ripple Against The SEC

The only place the SEC seems to be losing some ground in their war against crypto is their stupidly long fight with Ripple ($XRP.X). The SEC’s Motion to Revoke the XRP hodlers attorney (John Deaton) from amici curiae status was not approved.

First, what the hell is an amicus status? You might have heard it called friend of the court. In a nutshell, a person or entity with amicus status is interested in the case’s outcome. They share information and can even participate in oral arguments – if the court gives the ok. 

Understandably, the SEC does not want this attorney to share this information. 

But are Ripple’s officers the martyrs or white knights the crypto space needs? You don’t hear much about this – and I can’t find any update on it – but in February 2021, the SEC updated their complaint to target Ripple’s officers specifically. 

And if the allegations are true, then the XRP hodlers who are ponying up to Ripple are in an unhealthy relationship. It’s like a thief who stole your money is on trial, but you want him to win so you can at least get some of your money back – you have to root for your victimizer – if it’s true

We will hit this topic with much more attention in a future Litepaper. But if you want to read the February 2021 amended complaint, you can read it here.

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As if investors in Chinese stocks didn’t have enough to worry about, the government introduced a new wild card. 🤪

Beijing released draft guidelines designed to curb excessive gaming and spending among consumers. The proposed rules would require owners of online games to abstain from providing or condoning high-value or expensive transactions in virtual entities, whether by auction or speculative activity. Daily login rewards would also be banned, along with pop-up warnings to users displaying “irrational” consumption behavior. 🚫

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A “Meeting Of The Minds”

Investors’ game of “whack a mole” continues as banking sector fears continue. As one bank’s crisis is seemingly avoided, the market moves on to its next potential victim.

Today that victim was Deutsche Bank. The German lender’s shares extended their decline after a sudden spike in the bank’s Credit Default Swaps (CDS). This asset is essentially an insurance policy against the bank’s failure, so a jump in price means the market is pricing in a rising risk of failure.

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What The Fed Did He Just Say?

Despite the market celebrating cooler-than-expected CPI and PPI prints this week, one Fed Governor remains thoroughly unimpressed by the progress. 😒

Federal Reserve Governor Christopher Waller said that U.S. central bankers “haven’t made much progress” despite embarking on one of the most aggressive rate tightening cycles in history. He noted that important measures and components of underlying inflation have “basically moved sideways with no apparent downward movement.”

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Powell’s Poetic Jackson Hole Speech

Fed Chair Jerome Powell’s highly-anticipated Jackson Hole speech initially sent the market indexes lower before rebounding to close the week mixed. 📝

Although he acknowledged the progress higher monetary policy has made on inflation, he reiterated that prices are still above the central bank’s target. As a result, the Fed is prepared to raise rates further and intends to hold policy at a restrictive level until confidence improves that inflation is sustainably moving towards its target. ⏯️

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