We have been watching this give and take between XRP and the SEC for months now and always felt that the Federal Reserve was adamant in NOT allowing any of these cryptocurrencies to take root here in the USA before theyu could roll out their CBDC.
Although the XRP platform had achieved success in limted crossover markets around the world prior to these SEC lawsuits, stark reality is without the dominance of the US dollar incorporated behind them they could never harness a truly global presence.
Our belief is there are factions of our government recalcitrant to embrace anything crypto till they have their product in place so they do not lose “control”. The collapse of SVB bank recently to us signaled a very astute move by the central bankers to shut down to go to bank in Silicon Valley for crypto ventures in what appeared to be a measured destruction of the bank (and sector) by virtue of massive fraud used to “play the game”.
The rumour spawned by one prominent VC guy (Peter Thiel?) having problems accessing his cash was all it took to spark the run. And the bond debacle coupled with commercial real estate exposure debt coming due in next 16 months looming in bank boardrooms across the country certainly a cause for concern as any of them could be put in a similar postion as SVB.
We have read that the San Francisco “FED” was aware of the escalating shrinking deposit, elevated cash out wheel and deal mentality this bank thrived on and knew the inevitable well timed bank run would crush it. Moody’s, a rating service owned by Berkshire Hathaway was sending out red flags for months before crash so there were no secrets here, other than maybe the scope of the massive fraud revealed.
Give the Fed credit for containing the panic even though the small number of banks affected involved much more capital than the thousands of banks in 2008
Interesting to note JP Morgan Chase absorbed lion’s share of projects and contacts from SVB and now sits in control of those ventures
This is a brave new world in finance and the concept of money and wealth is changing rapidly for the first time ever, or since the creation of the private bank Federal Reserve on 12/13/1913