Judge Torres hands Gary Gensler's SEC a crippling blow in their blitzkrieg war on crypto.
Yesterday morning the popular cryptocurrency XRP started to jump up in price, traders were caught off-guard, crypto markets started to rouse. Then announcement spread like wildfire across crypto twitter.
The beast had been slain. The SEC was defeated. XRP is not a security.
Kinda. More on that in a minute. The important takeaway is, a security is a kind of asset that is highly controlled by the extorters regulators at the Securities and Exchange Commission.
They were using this lawsuit and many other lawsuits as a means to gain power and influence over crypto before Congress could make any sort of ruling to keep them out of it. And the plan was working. Until it wasn’t.
XRP pumped 85% in the hours after the ruling and Coinbase led the charge of exchanges relisting XRP to the masses and opening it up for trading.
Twitterati, academics, degenerates and even some normies were aglow in this dramatic reversal of fortune for the beleaguered crypto industry that has been struggling with an onslaught of bad press, high profile lawsuits, scams and infighting ever since Sam Bankman-Fried drove FTX into the ground in late 2022.
A few weeks ago many in the mainstream media were calling for the death of crypto. The epitaphs were being penned.
Chamath Palihapitiya even said so on his VC circle jerk All-In-Podcast. Then Blackrock’s Larry Fink said Bitcoin was kinda cool and then wham-bam-thank-you-mam the SEC got thrown through a table like Mankind did at the 98 Hell in the Cell.
This is a big deal for crypto, even though the ruling has a hat tip to the SEC in regards to institutional purchases of XRP being a little suspect.
The larger win here is the narrative shift. The Deep State has been dealt a massive blow that will take them sometime to recover from (which they no doubt will).
The crypto industry is going to see this as a cautious yellow light to start and re-enter the US market, a market they had been fleeing from in a blind panic since the start of the year.
But the biggest win is the public perception shift.
Even though 99% of normies won’t know what’s happened, the financially attuned will get the drift.
The water cooler chatter morph from “crypto is a scam” to “crypto is an interesting new thing” will be bolstered.
The Overton window of what is an acceptable form of money, currency and property will continue its shift toward broader crypto acceptance.
