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Hello this is Matt on the moon Lambo Channel a popular attorney within the Xrp community has warned that the SEC May have a new lawsuit against xrp Ledger participants at least that's Within the realm of possibility so I Want to talk about this and uh this is Another video where I just got to say This is not to alarm anybody but this is A topic being discussed within the xrp Community it's a real thing that Actually could happen so we can talk About the degree to which it's probable And what that would mean that's exactly What going to do in this video here um I'll tell you at the outset before Getting into a lot of the specifics of What's being discussed here um I'm Personally not particularly fearful and In terms of what this would mean for xrp Well look xrp already has legal Clarity But if there's another lawsuit directly Against xrp Ledger Participants especially if it has to do With the nature of the code that could Cause uh the the xrp markets on a global Scale to to respond negatively which is To say xrp price go down Now Again as far as how this could happen Who they go after we'll get into the Specifics here I just wanted to say at The outset although I absolutely Acknowledge this is a real thing that
Could happen I'm not going to lose sleep Over it but uh before going further I do Want to be clear I do not have a Financial background of any kind I am Not offering Financial advice and you Definitely should not buy or sell Anything because of anything I say or Right I'm just an Enthusiast who enjoys Making YouTube videos about crypto Related topics but just as a hobby and Just for fun now uh this is relevant to The story so I want to mention this real Real quick in case you missed it big News just yesterday uh SEC is going After Unis swap looks like they're going To sue him into Oblivion that's the goal Anyway they did send a Wells notice to Unis swap that's the step that's taken Right before there's an actual lawsuit Filed it lets the the the company or in This case Unis swap know uh hey we're Intending to recommend that you get sued Into Oblivion uh you do have a chance to Respond with anything you think that we Shouldn't be that's the procedure anyway And then after that there are five Commissioners at the SEC that vote on Whether or not to bring the lawsuit Forth and I think it's a virtual Certainty that this thing is going to go Through there's going to be a vote it's Going to be probably a three to five Vote ginzler is certainly going to be in Favor of this
And uh then that'll be in the headlines Too when that happens and I'm sure I'll Talk about it when that that news breaks But why are they going after them well Unis swap decentralized exchange here is Considered of course to be part of Decentralized Finance why is that Relevant well because the SEC made it Clear about a year ago they're attacking Defi decentralized Finance and so given that The xrp Ledger Has a built-in decentralized Exchange Could participants be in trouble that's And the the answer technically is the SEC could come after certain Participants that part is true they Could choose to do it because the SEC is Chalk full of bad decisions look at Their history as it pertains to crypto No shortage of bad decisions I think Zero good decisions Right um so here is a post from the Account whale fud on social media Platform X massive account 412,000 Followers and this was posted on April 14th last year 2023 and they simply wrote us SEC sees Defi platforms as Exchanges and this is where attorney Jesse Hines uh chimed in he reposted That on April 15th last year and he said I love defi I love dex's decentralized Exchanges but I don't totally disagree With this view many are operating
Unlawfully at least in the United States First let's talk about why they lose Money transmitter type laws matter which Is a broken sentence it is important That anyone who has any control or Influence over the exchange uh of your Assets be registered and regulated this Keeps them compliant and most Importantly often comes with insurance Obligations we've seen many D5 protocols Get hacked and people lose money in a Perfect world this wouldn't be needed But we are far from from a perfect world Anyway The Innovation around blockchain Has been truly amazing and necessary for The progression of the underlying tools Of our financial system it's just time To marry them with the legal framework And so there you go whether you agree With them or disagree with him he's made His his perspective known that hey there Might be something to to something to This in specific Instances now that was reposted by an Xrp Ledger developer DS on social media platform X he's atex DS and he is the founder of Expector and so he reposted that and he He reposted this the other day April 10th this year and this is why the Community started talking about this Again he said uh does that make The xrp Ledger in exchange because again Jesse Hines attorney hin said I know loves
Defi loves decentralized exchanges but He's not disagreeing with that view Because again The View which is that uh Us SEC secc's def5 platforms um as as Exchanges so the question does that make The xrp Ledger and exchange and of Course if it does you can see how the SEC in theory could have a brand new Attack bringing us right back into the Fold from a legal perspective and oh Wouldn't that be the greatest gift no at Least if you're going to do this you Assat Pricks over at the secc could you At least wait until the bull run's over At least wait until the Bull Run is over Um so to be truthly told though like Even if they were going to do this I Just I'd be shocked if they did it Before uh they tied things up with Ripple I I'd be surprised two separate Xrp related lawsuits I Mean I don't know crazy things happen in Life sometimes I'd kind of be surprised But uh attorney Bill Morgan who has just Been a wealth of knowledge throughout The basically the entire SCV Ripple Lawsuit and he spent a ton of time Articulating all sorts of stuff that Regular people like you and I who are Not attorneys we just have no clue and So um I've always appreciated him Sharing his perspective and he's he's Saying actually yeah there's something To this attorney Morgan says warned
About this ages ago and he posted that Just the other day on April 10th and in posting that yesterday he Shared one of his own posts from August 9th of 2022 and he wrote it is exciting for The Xrp Ledger and a timely reminder that With a decentralized exchange and an Amendment to imp an automated Market Maker that the SEC is Seeking a rule Change to expand the definition of an Exchange under the exchange act that may Cover The xrp Ledger and so again just I'm just putting it out there it's a Real thing that really could happen it's Something you should be aware of Sometimes unlikely stuff happen I mean Look before the lawsuit dropped with the SEC in December of 2022 the day before That dropped did what did you think the Probability was that the SEC would be Attacking you as an xrp holder and Attacking Ripple probably about zero Right so sometimes the unlikely actually Does happen and so here's attorney Morgan who has been um an incredible Source of information and and it's been So incredible having him share's Perspective liter literally for years He's just saying this is a thing that Actually could happen xrp Ledger could Get attacked so let's expand upon this Though to what degree is this risky what Does that even mean right and so I wrote
To him cuz I was curious I always Appreciated his perspective I wrote to Him yesterday and I said who would the SEC sue if they wanted to go after this Because look I mean there's all sorts of Participants I mean they're already in a Lawsuit with ripple right for for Different reasons different infractions Is what they call I'm sure but there are Other participants there are validators You go after validators you go after Noe Operators go after ecosystem Participants I was just want like who do You go After and um an attorney Morgan did Respond to me and And he first of all note that he shared A screen grab with a couple other posts One from Scott Chamberlain xrp Community Member developer he said wouldn't this Make The xrp Ledger and exchange and That was in 2023 in April uh Jesse Hines Responded to that attorney Hines and he Said that is a billion doll question so Scott Chamberlain a former attorney Jesse Hines a current attorney Bill Morgan an attorney they're all kind of Recognizing well it's a thing it's worth Discussing in theory Possible uh and so attorney Morgan Responded to me and said great question Because why did the SEC go after Unis Swap and not the liquidity providers or Validators same with the xrp Ledger
Would it be Ripple liquidity providers Validators developers who created the Amm amendment or Builders of certain D5 Projects on The xrp Ledger I am not the Only one to raise it I have before but Others raising it today as a attorney Jesse Hines remarked about The xrp Ledger that literally could be a billion Doll question yeah so this would be Gigantic I'm just warning you like it is Possible the SEC could come back for Round two they absolutely could I don't Know what I as far as what it would mean For xrp xrp's already been declared not A security that wouldn't change it's Just a question of how would Market Speculators respond what do they think Might happen would there be negative Implications that are permanent if Things don't go well as pertains to The Decentralized Exchange and I don't know How the answer would be yes frankly Because it's decentralized on a global Scale but if they think that that Impacting United States markets would be That uh that big of a deal yeah that it Wouldn't help it wouldn't help long-term Viability of xrp and The xrp Ledger Wouldn't help it that would it wouldn't Be good Right so here's a perspective from xrp Community member Mickey B fresh who Isn't really buying this but I do buy it Not again not that it's probable but as
A thing that we should discuss in the Community it's worth discussing just to Have it on in the back of your mind tuck It away at a minimum and to recognize That yes it could happen it could that's The truth but Mickey be fresh isn't Seeming to buy that and so here's what He had to say he wrote to attorney Morgan and said Warren all you want it's Irrelevant for The xrp Ledger The xrp Ledger automated Market maker is built In ly as a core feature to the C Codebase of The xrp Ledger software There's not a more decentralized way to Create a truly decentralized protocol Than building into the blockchain with No admin controls and no governing token And minimal governance with only fees Decided by liquidity providers and I got To pause here to say remind you of what Attorney Morgan just said in that last Post from Him like if they want they could go After in theory the people that wrote The code they could Absol could do it And now it doesn't mean they have a good Argument it doesn't mean that they'd be On the right side of history but the s That doesn't stop the SEC from you know Suing anyone even if because I'm not Convinced they believe they're on the Right side of History they're just doing Stuff they'll just do it to to try and Mess stuff up take down crypto whatever
Yeah so I I respectfully disagree with That perspective from Mickey be fresh But anyway he continues I like to have Opposing Viewpoint so I'm going to share With you the rest of what he had to say There's nothing to worry about in Borrowing and and lending are coming Next in Development nothing the SEC can do There's literally nobody to go after Open source software Free Speech not to Mind you that xrpl decentralized Exchange order book has operated for 12 Years okay it's got to pause to say Wasn't Ripple like eight years old when The SEC came after them like if anything The longer it's existed the more you are A Target actually anyway and then he Says wasn't even brought up in case Versus Ripple what makes an amm Decentralized exchange different than an Order Book decentralized Exchange I also Suggest to read the technical Implementation because it's uniquely Designed compared to Unis swap which is A decentralized app not a blockchain There is a significant Difference um yeah but again like what Was the original post here the USC sees Defi platforms as exchanges so anything That's defi is potential a Target I Think that's kind of the over Overarching point right anyway then he Says no no reason to freak the community
Out over something that is not something To worry about SEC has no case versus Unis swap to begin with that is Desperation at its finest Gary be gone In a few months and all this be history I can't wait because it's absolutely Ridiculous how absurd Gary and SEC are Going the cftc is going to have major Problem with this case versus Unis swap We don't know the details yet of what They are claiming if it's a uni token The Unis swap token are automated Market Maker pools which both are grasping at Straws in my humble opinion yeah so I Agree with the in part of that which is That the SEC would be grasping at straws They're just trying to take down Whatever they can and hope they get a Stupid judge and they fall for it you Know yeah I would I would buy that but As far as freaking the community no this Is a discussion within the community That is reason able to have you know Just because something is a low Probability of occurring it doesn't mean That it is off limits to discuss I mean If if somebody reads the surface level Of this and gets alarmed then inform Yourself with the rest of the Perspective engage in the discussion so That maybe if might find out it's not That big a deal but make your own Decision like the the point is the Discussion should occur I'm all for that
And just because somebody might be Scared of any topic I don't think that's A good reason to not address it I think That's a bad and limped way to go Through life somebody might get scared And in theory even if or if you want to Go further well they get scared and it's You know it's it's not worth being Scared about well that's subjective and Even if it's not a big Target shouldn't We be Informed but no because somebody might Get a little bit scared we shouldn't Make sure that everybody's sufficiently Informed just because somebody might get Scared because it sounds scary on the Surface so that's where I respectfully Disagree he doesn't have a crazy Viewpoint and I agree with some of what He said but I just wanted I like Thoughtful discourse so I'm just making My piece known you guys may agree with Me or him or a little bit of both all Good here's what attorney Bill Morgan Said in response to that post I just Shared with you from Mickey be fresh Attorney Morgan said I don't disagree With the points you make if the xrp Ledger is beyond the sec's reach well And good however there is no apparent Limit to the sec's overreach okay there I just got to pause to say that's what I Was getting at a couple minutes ago the SEC will make bogus claims and and just
File bogus Lawsuits just because to cause trouble They're a bully so yes attorney Morgan Is right and it is right to discuss this And then he says David H chief of the Sec's crypto unit previously said the SEC is going after defi that is breaking The law further the proposed change to The definition of exchange and the sec's Public statements about it indicate its Proposed amendments to rule 3 B -6a Under the Securities Exchange act to Broaden the definition of exchange would Include dii protocols within its reach I Extracted what guinsler said below from Gensler's April 14th 2023 statement About the proposed rule change Concerning centralized exchanges and Decentralized exchanges you make a good Point about who the SEC would go after Concerning the xrpl deck and that would Be a great difficulty for the SEC to Overcome and then he tagged me and he Said Moon Lambo asked me this question And the answer is Unclear however recall Hester P's Descent that the amendment could require Validators defi app providers and Software developers to register as Exchanges totally crazy right but that Is the warning of no less than a sec Commissioner so there you go Hester Pur Is warning about this one of the Commission
And so yes the amendment would require Validators def app providers and Software developers to register as Exchanges so that's why I was saying if The SEC so chooses they absolutely could Go after people building on top of the Xrp Ledger people uh proposing changes Via the amendment process to The xrp Ledger C code on layer one they could do That they could go after validators are Those good arguments no what it stand up In court no would they be on the wrong Side of History yeah yet again but they Could do It and so then attorney Morgan says so I Am not sure you need to to be saying I Am freaking out the xrp community I Believe the risk is quite minimal but The warning has a foundation especially With a guinsler Le SEC and forwarned is Forearmed spot on and that's why I Respectfully disagreed with that part of What Mickey be fresh had to say I think That even if it sounds scary on the Surface we should work together as a Community to make sure that everybody is Aware of this arm yourselves with Knowledge and if there's something that We can be done who knows maybe somebody In the community thinks is something or An action that should be taken yeah of Course we should talk about this but of Course you know I'm with attorney Morgan And I acknowledge this which is why I
Started the video saying along these Lines I I'm not I'm not exactly losing Sleep over this you know I don't think It's probable to happen but I Acknowledge it could happen because Sometimes the improbable happens which Is what happened in December of 2020 When the SEC attacked Ripple and as a Result all of us xrp holders and wrecked Our Bull Run and sent us into a tizzy For literally years sometimes the Unlikely does happen and now you know That this is at least possible um I Just again not afraid of it there's Other stuff they're probably going to Want to attack and the fact that they Just lost the Ripple case maybe there's An aspect of that that would make it Harder for them to win if they did Choose to go after other xrp Ledger Participants developers or Otherwise but we'll just See they're just they're fullon Attacking everything crypto just don't Put it past them let me know let me know Please what you think in the comment Section Below I'm not a financial adviser you Should not buy or sell anything because Of anything I say or right that would be A very very very bad idea until next Time to the Moon Lambo
