Did Richard Heart Beat the SEC? What the Court Really Ruled | Daily Crypto IQ

Yeah, [music] [music] heat. >> [music] >> I never knew. [music] I never knew. [music] I never knew. >> [music] [music] >> Hey hey hey. [music] >> [music] [music] >> I think that we're just holding on to something. >> [music] >> Heat. Heat. I think that we're just holding on to something. I think that we're just holding on to something. Just tell me what's over Heat. Heat. I think that we're just holding on to something. I think that we're just holding on to something. Just tell me what you >> [music] [music] >> Whether you [music] >> [music] [music] >> I want to hold you. [music] I got a heart. [music] Oh, [music] hey. What's up everybody? Welcome to [music] the Underground Crypto Deep Dive Show. And no matter what, we're here back again. And we can't stop, [music] won't stop.

No matter what the sentiment is, no matter even who's here, I'm going to keep going and raising my crypto IQ. Who's coming along to be a better speculator in this market? Shout out everybody in the chat. Prime Minister Melissa Strugahar in the building. Digital revolution. Shout out to everybody who's here. Welcome in. Welcome in. It is Thursday. You guessed it. That means we're one day away from DeFi Friday, one of my favorite streams. But I love all the streams because I love learning all kinds of things that I didn't already know. Check out these crypto bubbles. I do kind of want to go look at Trading View where we've been starting off the show, right? And just see what the heck is going on for the 4our BTC chart. Now, of course, it looks like we lost that 200

day moving average. This red line is an average line, 200 days. The white line, average line, 21 days. So, you have 21 is white, red is 200, and that blue one is a smooth 200. So, it's slightly different because it's been smoothed. Anyways, you can see when we zoom in here that we lost right here. We lost that 200 day moving average and we did jump back up to kind of retest it and was rejected. And here we are now sitting under that 4hour 200 day moving average. I always mess that up. I always say it backwards. Where do we go from here? So, we just kind of had a wick down to about 62,763 and we pulled all the way back up to 63,484. Where are we going from here? Let's go to the 1 hour. 1 hour.

Kind of the same jazz. Under the 200 day moving average, a lot closer to the 21. Still under the 21 on the one hour. So, this week, anybody rolling in? All right, I'm caught up on the chat. So, this week we've moved through like Richard Hart's controversy, tested his claims about Hex being better than Bitcoin, right? And compared his founder model against Charles Hoskin founder model uh of Cardano, if you don't know that. Tonight we examine the events that changed the entire conversation about Richard Hart, his quote unquote victory against the United States Securities and Exchange Commission, the SEC. There's no question that Richard Hart won the case and the SE the SEC's claims were dismissed. The agency chose not to amend its complaint and keep it going. and the final judgment was entered for the defendants. But several

different conclusions have been built around the top of that victory. Some people say the ruling proved that Richard Hart didn't do anything wrong. Others say legally establish that Hex Pulse Chain and Pulse X are not security. And critics sometimes dismiss the entire victory as a meaningless technicality. None of those descriptions tell us the complete story though. Tonight, we're going to go directly to the court's reasoning and answer three different things. What did the SEC allege in the first place? Why was the case opened? Why did the judge dismiss the case? What was the reasoning? And what did the ruling leave undecided? The Clarity Act was delayed. It was not voted down. Okay? So, don't let all the people on on the internet and Twitter tell you that the Clarity Act was dead. Is the Clarity Act a good or

a bad thing for crypto or the average crypto enthusiast? That's a totally different question. But we do know that it's scheduled to uh come in September 15th at actually about 2:15 Eastern time, a procedural vote. So, at that point, we will know a heck of a lot more. In March 2026, the SEC issued new guidance stating that most crypto assets themselves are not securities. However, the SEC also distinguished the assets from the transactions or surrounding them. When we did the whole who runs crypto or who controls crypto, uh we went deep into a lot of this different stuff. How the asset and the transactions surrounding the asset are really two totally different things. A non-security token still can still be offered as part of an investment contract depending on the promoter's presentation promises and continued man managerial efforts. That

distinction is important because the Richard Hart court did not decide the complete you know overall of everything that has to do with hex and pulse chain and pulse sex. They had a judgment and a dismissal, right? Fact of the day is that facts are stubborn. They are stubborn things, says John Adams. And what you may not know is that the SEC case was a civil enforcement case, not a criminal pro uh prosecution when it comes to Richard Hart. And the SEC alleged misconduct did not prove mis did not prove misconduct. Right? The case ended before discovery, before trial, before a witness testimony or a factual verdict. So really, we don't know much about anything factual that the case was originally trying to get to. At the motion to dismiss stage, the judge generally treated the SEC's properly uh pledge

factual allegations as true and asked whether those allegations were legally sufficient. That's where we were. And the judge determined that the SEC had no had not established sufficient US jurisdiction um adequate, you know, adequately alleging [music] anything when it came to a security transaction when it comes to Richard Hart. John 3:16 in the house. Welcome in. Welcome in. Thank you for being here. Where were we? And the judge did not conduct a complete Howy analysis deciding whether Hex Pulse or PLSX were security transaction. The SEC allowed the files an [music] amended complaint on April 21st, 2025. It notified the courts that it would not bother to amend any of its complaints. Final judgment was subsequently entered in favor of Richard Hex, Pulsechain, and Pulse X. That is a very rare legal victory that he got. So it is quite

significant even if it doesn't mean that everything was hashed out and he was found completely, you know, not guilty of anything. And a federal district court ruling does not automatically create binding nationwide precedent for every court that could try to take up a case against him. So we got to keep that in mind as well. Anybody see this? Could it do it? Invert a head and shoulder and get us back above the 200 day moving average for the hour? I think it could. Although I don't think the bottoms for this bare market is in. I've said many times though as well that you know 1,00 I think it's 1,080 days for your cycle from every bottom is usually the next bottom. that that date 1,080 days that's been toted a lot would be October 5th. So, we really want

to pay a lot of attention to what happens around that [music] time. Of course, the exact date, but also just around that time in general, October 5th, and then see if we start moving up because October 5th is very much in the beginning of October. So, as October goes on, November comes in, do we start getting higher highs and lower highs. So, let's see what's going over here on the crypto bubbles. John 3:16 says, "I am in peace." That's what I want to hear. Peaceful people are usually a lot of fun to be around. So, I'm glad to hear that you're living in peace. Me, too. By the way, John 3:16, you know, for God so loved the world, I see you that he gave his only begotten son so that whoever believeth in him shall have everlasting life.

I know. I know. John 3:16, Ethi. To the upside today. Adam 7.5%. To the upside today. Cosmos. Ah, they get me every time with whatever I clicked on. I don't even know what I clicked on. All right. Where where am I allowed to click here? I guess the X. BTW Bitway 6.7% to the upside and pump.f fun 5.4% to the upside. That's the big takeaway there. Let toggle that one through 1,000. And what do we see? Looks pretty flat if you ask me. I don't know why I'm rhyming like a children's story book. What is this? Dr. Seuss. All right, let's drop down 100 to 200. Aikido getting another big pump. I like this project, but I keep not getting the coin and actually showing it off on stream. We'll have to do that. Humanity 16.7. It is like

a DeFi gaming project, I guess you could say. So, maybe tomorrow we'll take the time to do that. [music] Grass up 6.6%. Where is grass price-wise nowadays? When is it went to 33 cents? Humanity, you know, remember humanity got kind of absolutely destroyed. I don't think it was within the month. The year is probably better. Look at that thing from a high of like 77 cents to literally 5 cents. Wow, that is something. Is humanity gonna make a recovery? Jasmine, I always love to see Jasmine have a pump because, as I say, you win some, you lose some, you have some really good ones, you have some really bad ones. And for me, Jasmcoin is probably one of the worstly timed, worstly thoughtout purchases that I ever that I [music] ever did. Um, I'm still holding, but you know,

I' I've done a lot better than Jasmine. I don't know why I bought it when I bought it. And I bought like $1,000 of it when I I don't know what I was thinking. I was in a rush, too. I remember I wasn't even home. I was out running around. Anyway, Cisk is down 29%. This thing's been running quite a bit this week. Look at the weekly. It's been putting in higher highs and it finally kind of pulled back to where it was here at about a dollar 9. It's at a $1.15. And how's everybody doing out there on a Thursday? Bedrock up 23%. Uh, Quantum Resistant Layer up 13.6%. Plume up 10%. Lab down 20%. Who would have thought lab would be down 20%. Just kidding. Lab has crashed pretty hard. Somebody the other day said they came

in here and bought Lab when I made a reel about it. I don't even remember what it was. cuz it was like 7 cents or.7 cents. Anyways, they would later sell it for about $20 and that that just made me really really happy that somebody nailed that GPS and GU and we'll go ahead and move along to our price rundown. So, we got 2.26 trillion. We're up.1% today on overall market cap. That's everything [music] in crypto. I got to slow it down for everybody here. Bitcoin is at $63,374. Let's refresh. Let me make sure those are good current numbers. Ah, we're up about a hundred bucks from that. 63,471. We have Athereum. Whoops. What did I do? I messed that all up. Wow. Who would have known that you could do that so bad? All right, there we go.

And we're back. Ethereum $1,886. BNB $610. XRP a dollar1 still holding that dollar mark there. Salana $762. Hyperlid $57.50 starting to get the move back up. Hopefully Cam's still crushing it with his long. Dogecoin 7 cents pretty much flat. Struggart says, "Uh, I'm only down 4K. No problem." I feel you. I definitely understand how that goes. I guess you find out how you how you're gonna handle that, huh? And if you have some income, I'm buying spot bags. You do what you want. Never financial advice. As I believe we are getting, if we haven't already bought them in the bare market, we're getting very close to what we will look back and see as the bottom of the bare market. Zcash $489. Monero XMR $394. It's up 6% where Zcash is down 1%. Zcash has been underperforming as far

as XMR has. Cardono 18 cents. It been holding. I've been impressed that Cardono has been holding up so well. It is down 10%. [music] It did just come from about 20 cents, but still it had pumped up to those numbers and now is holding pretty well. Chainlink $886. They give you a 7-day, but they they don't give you a 30-day. A 30-day number would be a lot uh more instrumental. But then where do they stop, right? They're going to give you a six month and a yearly number, too. XLM, just basically 16 cents, 0.159, a tick away from 16 cents. What else we got? Canton Network at 097, so not far from 10 cents. Graham is a$1.33. JDub in the house. Struggle heart biting his nails. I feel you, Struggerart. I know how it goes. And uh we're allo

we're all hoping for the glory days when we used to have altcoin seasons and you know really good bull seasons. Is it over? Is it just a matter of time, four year cycle? That is all yet to be seen. You got to think about You got to go back to the days where like Bitcoin was like under $3,000. people bought. You know, I've I've heard and seen people sell their house to buy that Bitcoin and um they won. They won really big, but you got to think of how it felt at the time when [music] they did that. You know what I'm saying? Like there was un unsurityity in the air, right? They were not sure that it was. Nobody thought it was going to go to the prices that it is now. At least not as quickly as

it did. And so with all great stories of triumph and victory financially, they're usually filled with a lot of uncertainty and risk. So we'll see where we go. I'm I'm here for my own story arc. Let's see what happens. Sweet 68. It is up 2.4%. Avalanche $646. What else is worth talking about here? See where meme core is at today. A11 hasn't done much. It says it's down 1.9% on the last 7 days, but honestly, if it holds above a dollar, I'm pretty much happy with that. Let's go see what's trending as we very much introduce our talking point for today, which is all about the SEC case that was brought against Richard Hart. Maybe some of you guys don't really know how that went, what it was about, what was decided. So, I'm going to talk about that

real quick before we even get into what's trending. So, let's start with the problem because that usually gives us a direction. The case is usually explained through two one of two extreme stories, right? supporters will say Richard Hart defeated the SEC [music] and prove that Hex, Pulsechain, and Pulseex are not securities. And that would sound like a very triumphant thing. That honestly sounds like something Richard Hart would say himself. The critics would say he escaped through meaningless uh technicalities, so the victory didn't really prove anything. Both descriptions remove important parts about the ruling. Both of them are incomplete. And here at Underground Crypto, we're not here to villainize or uh become an echo chamber for Richard Hart in either direction. We want the facts. Is that so hard? So hard to just be neutral and and care about [music]

the facts. But that's what we're going to do. Separate the case into five layers. You have the SEC's allegations against Richard Hart, right? Hex PullChain and those things. the court's jurisdiction, the domestic locations of the transactions, and the factual merits of the allegations, and then of course the final legal outcome. The SEC can lose the case without ever without every allegation being proven false. Right? Richard Hart wins on jurisdiction without the victory being meaningless either, right? Because just because it was technicalities that got the case thrown out, doesn't mean that his win was meaningless, doesn't mean that it proved everything he's ever said was absolute fact. You have to have some ability to draw the line and read between them. Uh let's see. Struggart says, "Capital is siphoned off by institutions with the ETFs and hasn't rotated back in

alts. retail hasn't been strong enough to keep alts stronger. Well said, struggle. It's very true. Uh he says, "Keeps me from buying junk food." Look at that. Crypto's making you healthier, struggle. Look at that. And again, shout out to JDubs. Thanks for coming back to the channel. We're still talking about Hex. Two uh series two weeks in a row. We're not going to be talking about uh Pulse and Hexchain every week, of course. So, I hope you still come to the stream. We'll still have great topics, right? But we got to raise our crypto IQ all the way around the board. There's a lot of topics in crypto. I'm sure you could imagine. I really need this coffee right now. All right. So, the evidence supports a more [music] precise conclusion here. Richard Hart decisively defeated the case the

SEC actually filed, but the court did not provide Hex PLS or PLSX with universal uh declaration that they can never be involved in security transactions. That conclusion gives Hart credit for a significant victory without expanding the ruling beyond what the judge decided. So, we're going to start with what the SEC actually alleged when we get to that point of the show. First, we're going to talk about what's trending here in cryptocurrency as far as Coin Gecko is concerned. We got Pudgy Penguin. Of course, I say the strongest NFT project in the game, and then I turn around and say that doesn't really mean much because I don't I don't know [music] that NFTts are doing that well, but there's been a few here and there connected with game uh you know, [music] gaming, DeFi, and stuff like that. that

have been relevant, but none of them as big as Pudgy Penguins. Pudgy Penguins has physical products and physical toys in stores. And then we got Stonk Broker, which is a pretty funny meme. We're going to revisit that one. [music] Cash Cat, Pumpfun, Ethereum, Ethi. What is Ethi? Do you know? Bit Tensor, Aikido. Oh no, not 67. Uh Memecoin here at 30.8 million. Lab back on the radar at about 9 cents. Uh, Acurist, we've been over this when it first came out. Salana Virtual Protocol, Barkcoin from the AI agent days of of what? Cookie Dow and Open Eden. So, there's a few projects here to definitely talk about. Let's start with that Stonk Broker. Has anybody ever known a Stokon broker? Stons. Who loves them some stons? Some S&P 500. [music] Uh they were making memes today. Salana in the

Brokies 500 or something like that. It was pretty funny. 44.9 million in market cap. Of course, that means been done many times. 2.7 billion max supply. Seems like a very random number for a max supply. It is a Robin Hood contract. And I really just want to go to their website and take a look at that again. What is the point of it? So, it claims to be a token launchpad, fixed pricing, bonding curve, and custom token launches on Robin Hood change with automatic unis swap v3 liquidity, fee splitting, and a staking vault community curated by the ston brokers and the ston broker holders, the coin, right? and the people who hold it. So, Anvil NFT automated market maker, swap ston broker for broker NFTTS and swap broker back into ston broker on the trade tab with broker wallet

wallets in my brokers. Uh, yep. active staking tiers in [music] act in active and collect token distribution and distribute. Okay, they're just saying where you can find everything, I guess. Where are these supposed tabs? I'm not sure. Is this not [music] the It's not the official website here. And then of course, here's your swap, right? Okay. Here's all the different tabs. I'm like, where are the tabs? The launcher is coming soon apparently in 20 Oh, wait, wait. Two days. What is going Dang it. Hold on, guys. I got to I got to kick somebody who's spamming in our Discord. Shout out to our free Discord. Plug that for a minute. While I do that, there is a link to our free Discord in the chat. And because it's free kind of anybody can come in here and let's get

rid of him. Ah, I always have to do it on my phone. For some reason, when I try to ban people on on the desktop version, it asks me for a password that I've never actually ever set up here. So, give me one second. This happened. You have to delete that guy in Discord. I see it. There are bad actors. I updated a bit some of the, you know, who's allowed to join the group settings and things like that and so that should help a little bit. But people can still do really dumb things, I guess, if they want to. So what then? and he left the group so I can't even see him. >> All right, this is this is really annoying. He must have left the group as soon as he was done doing all that because

he doesn't come up as a member. H the settings for Discord, they're so bad. Sorry about this, guys. Let's ban him. There we go. and anything in the previous seven days. There it is. Got it. You know, they can make the settings so much easier. Like, why can't I just click on him, click, you know, profile or ban or something, and then be on with my day? Why do I got to go like all the way deep into the back end of like all of my settings as as the person who start, you know, who established the Discord? It makes no sense. Anyways, Stonk Broker launchpad. The launcher is apparently not quite ready yet. So, it says it's coming out in a day and 23 hours, basically two days. So, I would not be surprised if this thing gets

a resurgence and, you know, some hype around it. Let's go back. What else is is worth looking at here? Ethi. Some of you guys might not be familiar with Ethi. Yeah. Yep. That was the person's name. Like I said, I did change like some of the settings around how long they have to have been a member, join Discord, and things like that. It helps a little bit, but it's not going to solve every every uh I I I call them scammers. Some of them might be scammers. Some of them might just be spammers. Either way, Ethereum base arbitum and scroll contract addresses here for ETHFI has 426 million in it. What is it by market cap? It's number 104 by market cap. So, it's a pretty big coin. See, do we have a website here? Yep. Ether.fi. FI being

of course finance. They got the app. It's finance once again. So, you could pretty much imagine what's going on here. We got probably, let's see, vault swaps. Here's your portfolio. You can earn, I'm sure, yield, 4.7% APY. You can click this one, but you can't click any of these other ones. Supposed to be a 7% APY from RWA in USD. That's not available yet. So, the only thing actually available here is this reserve. It's got markets. It's got lending, right? It even has travel. Book hotels and save with crypto with ETH.5. So, it's a cool financial product. I think it's very much for those who it resonates with and maybe not for everybody. Acurist. Let's let's take a look at that real quick. So, first we grab the max chart. Let's see where this coin came out at January

20th, 2026. So, pretty recently. 36.9 million infinite max supply. Not great tokconomics if you ask me. [music] Ethereum base and B&B chain contracts here. Let's go to their website. way behind on the stream. So, real decentralized computational network, true, scalable, and secure, powered by phones. Anybody remember when this came out? Got a spare phone? Provide computation or compute and receive rewards. So, you give them the ability to kind of ping the resources in your phone and they'll give you something. Now, here's the problem with almost all of these so far. And I don't know where the blame lies. It's rather that the resources in your phone or your computer are really not worth much individually like that or they just keep all the money and they don't really give you much because the problem has been they don't really

pay much. You know, grass is another one. Uh I I'd been using grass for a long time, let's put it that way. And uh I think they gave me like 13 bucks. There we go. Allocation. Okay, I can finally claim my $13. Bro, the longest time it was supposed to come out, I came on the day that you're supposed to be and it was like unavailable. So, that was a little concerning. But here we are again. And there's a there's a referral to this. I did make $13 and apparently that's pretty good. Prime Minister says that most people did not even make that much. And it says this is your allocation for the snapshot of epoch 19. But does this count for like everything before epoch 19? That's where I'm a little confused. Is this just what you get

for like one epoch? because that wouldn't be so bad. Why didn't they pay us for all the other epochs? Are they going to? Probably not. What epoch are we even on anymore? I have no idea. Stage three. Stage two was uh epoch one, I guess, through 19 here. I never notice it and I've had zero trouble. So to say some good things about it, right? I've had I've It's super easy to get into if you go click on it. It just uses like your bandwidth of your internet that you pay for when you're not using it. I've never had any problem with it like slowing my internet down. Uh I've never had any security issues with it. It's super easy to use and I never really notice that it automatically runs in the background so it doesn't inconvenience me

very often. So that's what Acurus really reminds me of. But this is the same idea as bless and there's another couple of them out there and they're using grass is more the bandwidth that you're not using where this is more like the computational power of you know GPU and things that are in your phones. Go ahead and get rid of that. What was that? That was the ad that popped up. I don't know what the heck that is. All right. And let's see if there's anything else worth looking at before we move on here. Open Eden. Let's take a look at Open Eden. 32 million number 586 by market cap. Max chart says that this token generation event happened September 29th, 2025. A billion max supply. Don't sleep on your tokconomics. Uh let's see. B&B and Ethereum. RWA category

RWA protocol. As we take a look at their website real quick, open eden.com tokenized global finance. Open Eden is building the bridge to a new financial system. Our mission is to unlock trillions by bridging real world assets on chain seamlessly and securely. And you know for those who don't know XLM is another you know is being built on and they did test runs. The reason why this made me think about this because they said you know bringing it on changed seamlessly and securely. They did test runs on XLM network. It pretty much went off flawlessly as much as I've heard about it. and >> [music] >> uh a lot of big names JP Morgan and uh whatever the company is or institution that basically holds all transactions of everything that happens on the stock market. They're they're a part

of that as well. So, not to outshine open Eden here, but if you've heard that about XLM, those things are actually true. I'm very surprised that the XLM ticker hasn't gotten much motion. And does that mean that any money is actually going to flow through the XLM coin? No idea. You would think that would be a given to make sure that that happens, but they don't necessarily do that. And this is all about bridging things into RWAs. I'm not going to spend forever on that. We've talked to great lengths about that type of thing before. Let's refresh this. Make sure we got the fear and greed index. You know that number you should be keeping in the back of your mind on a daily basis. It is 29. Yesterday was 29. 7 days ago it was 29. [music] So

29. That's where we are. The sentiment of the overall market. How we feel. Fear and greed. 29. And if you've been around a while, you really understand what that means. If you don't, hey, throw 111 in the chat or something. I'll try to help you out. So, let's make this top 20 and not the top 10. Bedrock trending. But let's see what we got in funding rounds. We have this intra could probably figure out what that's entailing here. Saturn digital prime technologies XST which I believe just launched its token. I might be confusing it with another. That's why we're going to deep dive it. Aikido games is trending. Acuras trending. compound trending atleta network go plus security glide salana redstone I haven't heard about redstone in a while I thought redstone was pretty interesting river market capricorn previously a

prior APR we saw this thing uh do some numbers yesterday the duck apo which is interesting because It's very similar ticker or name but not ticker. Let's see. Fannibal, Avantis, and a so. So, we definitely have a few things to look at. The first being this in travel, web 3 travel booking platform and stablecoin payment infrastructure for hospitality industry. All right. So, this is really trying to bring crypto into the everyday travel industry. It's raised about $7.5 million so far. Who's our our tier ones here? We don't have any tier one in uh venture capitalists, but we have a tier 2 GSR. wouldn't stress yourself but maybe loosely try to remember some of the names of those top venture capitalists right it's for travel it has travel in the name digital prime technology digital prime uh technologies is a

technology provider offering institutional solutions for managing digital asset activities this is a service for institutions again we see a lot of projects that are specifically catered towards institutional and service probably because they believe that they're going to be heavy in these markets and that is a big deal and not click the right thing there. Let's see who are still didn't click the right thing. All right, never mind. We have no numbers here for what they've funded so far. August 12th, that was yesterday, [music] in a strategic funding round. The platform integrates trading, lending, and related financial operations for digital assets into a unified system with API connectivity for custodians and liquidity partners. Sounds useful. Just sounds real useful. Uh, a lot of people will probably pay a subscription or hire them, however they go about that, and institutions will

use them to help manage everything. What's going on? Oh, CCP in the house. Let's go. Bullish. When CCP's here, I know we're going to get some good comedic relief, right? Says you left. How are you doing? Where are you? I missed you at our honeymoon. You left me hanging in a cheap motel. Oh, the jokes are flying, huh? Oh, wow. Did we have fun question? Oh, man. You guys crack me up. Love all my undergrounders. Thank you for being here. Saturn. Saturn is a stable coin protocol that provides stable coin and yieldbearing assets. Again, institutions love this stuff. retail can't figure out why we need so many stable coins. Big contrast, stark contrast, and how institutions and everyday person feels about stable coins. I mean, I think about how many times somebody has said an older person has said

to me about cryptocurrency, you know, why do we need so many currencies? And it's like, okay. Um, I wouldn't think of them like currencies. I think of them like new startup projects in an emerging technology class. Totally different. Glide. Glide is a crypto deposit gateway and API supporting over 30 blockchains. Can somebody say interoperatability? 500,000 total raised. So, it's a specialized digital asset infrastructure startup focused on providing seamless cryptocurrency deposit solutions for decentralized applications and enterprise clients. Operating as a comprehensive technology provider, the platform allows users to fund their account [music] and execute transactions using over 100 different tokens across 30 diverse blockchain network. Sounds very useful as well. And they've only raised 500,000 which is not a lot but that you can glide right into I guess any of those 30 networks. Redstone. I haven't talked about Redstone

in a while. Hilarious said. Did you enjoy your bar mitzvah? Not sure what you're talking about. What happens in honeymoons? Oh, you know you know you went to casino spending that crypto promptly. uh properly with this ring I wed thee for sickness and health. So death us let's part hilarious all right the chat is is going crazy is a modular oracle for DeFi. Anybody even remember what modular means? My am I the only one raising the crypto IQ? I hope you guys are too. The first thing I'd point out is that Coinbase Ventures is a part of it. Blockchain Capital, those are ones we've talked about quite a bit. Of course, you have angel investors. That just means instead of being a venture capitalist company, it's an just an individual [music] person in their capital. And the Spartan Group,

we see them quite a bit. There is a token. So, we actually get a chart market cap of about 41 million all-time high 250 million. But what is Redstone? Well, it's a layer 2 and it's on bar chain, Ethereum, Blast, Fuel, [music] and Boba ecosystems. Ecosystems that you've probably never heard of these last three. Barra chain is a hard fork of Ethereum almost like PulseChain is very easy to get your stuff onto Barra Chain if it's already built on Ethereum like a click of a button. I want to visit Islam Islamic Europe. It's pretty funny. Uh oh yeah. I don't know what that means. I don't know. Maybe at the bar. A good place for the honeymoon. Yeah. Uh, I heard that all honeymoons at the bar end in success. Data risk and capital efficiency. Secure modular infrastructure for

onchain finance trusted by top DeFi protocols and institutions. Again, they've positioned themselves towards institutions because that's where all the money is. Build fast, build anything, build anywhere, build securely. one oracle every blockchain. So that's kind of their claim to fame here, huh? Wow, talk about like a generic photo. They have Redstone shirts on, but I'm just like, who are these people? Uh, blockchain network Canton with 6 trillion of real world asset taps Redstone for DeFi access. Okay, so Redstone seems to be a product that works well if Canton is actually using them and they're an oracle which is highly useful nowadays with data feed whether it's a jointic networks or just a private network whatever it is uh you need that data feed to be up and accurate so you can get price feeds and proof of reserves special

specialized oracles for atom and bolt redstone live real time monitoring and redstone settle right for RWA collaterals. They built a lot of stuff that would be very handy to institutions and developers and people building things. The average person probably would not even conceptualize why that project might do well. again, whatever services they sell, does the money go into the coin or does it go well, we know it's going into the treasury of the company, but does any of that ever go into the actual coin? Because a treasury of a company can be very separate from the market cap of a coin surrounding it. I want to have the wedding honeymoon at Cracker Barrel. It's pretty funny. All right, then we got River Markets, right? We want that liquidity to flow like a river. Not to be confused with river

the coin. Coinbase ventures all in there. Prime brokerage and uh ex execution platform for institution prediction market and trader. I know this stuff is maybe a little bit dry. Just take away that you know institutions are here and people are positioning themselves to to serve them right to have services for them. Let's look at Avantis. Avantis is a decentralized le. It's a dex, right? A decentralized trading platform for cryptocurrency and forex. It's one of those ones that came out during the craze [snorts] of dexes, which now almost feels weird to say. And it's a deck. I mean, when it comes to decks, it's like, what is there to say about them? There were so many of them. At one point, we were going and opening all of them and comparing them to each other to see which one we

thought was the best. Pubs are amazing. You're too much just to enjoy me at the local pub. Pub nachos. Hey, get you some of those pub peanuts. That little bowl they put out that everybody, every drunk guy has put his hand in after he didn't wash his hands right [music] after going to the bathroom. Those are the best. Those taste the best. Let's I don't know why I went there, but that's hilarious. I always see that and I'm like not eating [music] those. All right, let's talk about Richard Hart and this SEC allegation. So, the SEC filed a lawsuit July 31st, 2023, which for lawsuits is relatively recent because, you know, they can last forever. uh for certain people like let's say Andrew Tate uh lawsuits might last the rest of your life. So it alleged that Richard Hart,

Hex, PulseChain, and Pulse X conducted unregistered crypto asset security offerings. The offering raised more than a billion in crypto assets. Hex was promoted using claims about high yield and price appreciation. Right? They were promising price go up. participation sent assets to the Pulse Chain and Pulse X sacrifice addresses. They didn't like that. Hart and Pulse Chain misappropriated at least 12 million for luxury purchases. Not Richard Hart. He would never do that. He would never misappropriate any funds for luxury purchases. He's not even like that. That's so not Richard Hart. Uh the word sacrifice was allegedly used to avoid describing participants as [music] investors. Well, that sounds like he might have checked with his lawyers before he did that. These were the SEC's accus accusations, not the actual judicial findings, though. It's just what they alleged. It's not what they

necessarily discovered in discovery. What a motion for dismiss actually tests. Here, a motion to dismiss occurs near the beginning of a case. The judge is normally deciding whether the witnesses are credible, whether every transaction actually happened, whether the defendant is morally innocent, whether the jury would believe the SEC, and whether the investment itself is financially sound. The judge asks whether the compliant uh contains legal sufficient allegations and whether the court has authority over the defendant [music] and the conduct. This case never reached a full factual trial though. That means the allegations were neither proven nor disproven through trial evidence. So we really don't know anything about the details of the case. We just know that it was thrown out. Why personal jurisdiction matters? Before a US court can decide whether somebody violates US law, it must first establish that

authority over the person for the conduct being challenged even exists. Richard Hart lived in Finland at the time. The SEC pointed to US participants, global accessibility websites, YouTube and social media promotion, virtual conference appearance, and of course an [music] appearance in Miami. connections to developers or platforms in the United States. The judge found that these facts did not sufficiently connect or allege offers and fraud in the United States. That was the central problem was was the targeting of the case. Hart's online communications were available in America, but the SEC did not find sufficient alle um allegation that they were specifically directed towards an American market rather than a worldwide audience. You know that pesky internet. It's just available everywhere. There's a lot of governments that are not big fans of the internet. [clears throat] CCP. Chernobyl was amazing. The

most romantic honeymoon is a giant Vegas buffet. Hey, invite me to that reception. Maybe not the honeymoon. There's the tenderloin, too. I heard it's y'all are going on these, you know, they [music] might they might actually get married. Uh why the timing of Hart's US appearance matters. The SEC cited Hart's appearance at American events. However, several appearances occurred after the relevant offering period had already ended. The court reasoned that the statements were made after an offering ended and could not be established US jurisdiction for the original unregistered offers or sales. It's almost like anytime he showed up in America after he had offered those sales um was like he was here for that. Maybe he was, maybe he wasn't. So that distinction is easy to miss here. Promoting a token on a secondary market is one issue. Conducting the

original offering is another issue. A later appearance does not automatically relocate an earlier transaction to America. having American participants, it wasn't enough. The compliant identified some US participants in his offering, right? But simply saying American residents sent crypto did not establish where the transactions legally occurred. The [music] court examined questions such as where did the parties become irreversibly committed? Where were the transactions validated? Were US servers involved? Did users accept US-based terms of service? Were the relevant wallets controlled from America? And was the offering specifically directed towards Americans? The SEC compliant or complaint did not provide enough US-specific facts to answer any of those questions. And what are the most important legal issues created by blockchain? Where does the transaction occur when the buyer, promoter, wallet, smart contract validator, and any websites may have been in a different jurisdiction?

That pesky internet just can't track down where exactly things are happening at. It's hard to pin things on people. Again, because it's global, they couldn't really say, "Hey, this was specifically geared towards Americans." So, they didn't really have much of a case. why the fraud claims was also dismissed. The court did not rule that the al the alleged misappropriation was imaginary, some $12 million used for luxury things, right? Instead, it found that the alleged conduct described by the SEC occurred outside the United States. The relevant wallets were not sufficiently connected to America. The crypto platforms were not alleged to have any necessary US connection. The alleged online representation [music] originated abroad and the SEC did not show a sufficient substantial effect inside the United States. It's almost like they knew what they were doing. Therefore, the SEC had not

adequately uh pledged or pleaded a US federal fraud claim against HARP. An important distinction here, the court rejected the SEC's ability to pursue these allegations through this complaint. It did not hold a trial and issue factual findings that no misuse occurred. And uh I mean a billion dollars was raised if they used $12 million to I don't know stay in some hotels, buy a car, like I don't care if they bought watches and jewelries. It's a drop in the bucket for the amount of money that they raise. It's kind of insignificant. Was jurisdiction just a technicality. Calling jurisdiction meaningless is incorrect. jurisdiction is a foundational limit on government powers, right? It's what keeps America from just pursuing everybody they don't like anywhere in the in the world, right? Uh all those hackers and scammers over in countries like India,

Pakistan and stuff, they would go after them if they had jurisdiction. Not because they're wanting to do good in the world, but because there's a lot of money that they would make from doing that. A regulatory a regulator, sorry, cannot simply choose any court, any target on a global conduct. It requires the defendant to prove its innocence. But you have to prove a connection to America. If you're the SEC, the government must establish why the court has authority, why American law applies to them, how the defendant connected the challenged conduct to America, whether the relevant transaction legally occurred, if the government cannot establish those elements. Dismissal protects [music] due process. Richard Hart's legal team successfully challenged the foundation of the SEC's case that is sub uh substant [music] I can't talk what is going on it is of substant

right substance legal work [music] cannot not a clerical mistake sometimes a word you just can't can't get Maybe that means I need to sip my coffee. What is going on in this chat? Run it up. Run it up. Run it up. I want to have a honeymoon in crypto moon. That's pretty funny. All right, take a breath. Why the SEC's decision not to amend matters. Why didn't they amend their complaint here? [music] So, the judge originally allowed the SEC to repair its complaint. The SEC received an extended deadline, but ultimately told the court it did not intend to file an amended complaint because it didn't have an answer to their jurisdiction problem. [music] This matters because the SEC had an opportunity to add stronger allegations about US targeting, domestic transaction, US-based infrastructure, American efforts, and the relationship between the

projects and Richard Hart. And it chose not to continue. Was there some backdoor money? We don't know. We cannot know from the filing alone whether that happened because the evidence is insufficient. Uh the jurisdictional defect could not be repaired and I think that was the main problem there. The SEC leadership or policy changed right that was kind of a change of guard there might have also helped them a lot. Resources were redirected or several reasons applied simultaneously but the practical result is clear. The SEC abandoned the case and the judgment was entered for the defendant. Did Richard Hart beat the SEC? Yes, he did. Use the simple possible legal scorecard. He beat them because they were able to play. They were able to claim and the judge agreed that the SEC had no jurisdiction, you know, jurisdictional uh standing

for any of the allegations that they were alleging. Did the SEC file serious claims? Yes. Did any of the claims survive? No. Did Richard Hart pay a penalty or settlement? No, he did not. That's very uh important to point out. He didn't give them nothing. Did the SEC receive another opportunity to plead? Yep. Did they use that opportunity? No. Was the final judgment entered for the defendant? [music] Yep. That's what makes it a victory. Did Richard Hart defeat the SEC case? Yes. saying he didn't beat the case ignores the actual outcome. What the court did not decide. [music] Right? The court did not determine that every SEC allegation was factually false. Right? They didn't say that what the SEC was alleging didn't happen. They're just saying, "Hey, can't proceed because you don't have the grounds [music] to proceed. You

don't have the jurisdiction." Hex is guaranteed never to be treated as a security. They did [music] not determine that in the case. Same thing with pls and plsx. They did not determine [music] that nobody can ever go after them for those things. Every future offering using sacrifice language is legal. They didn't prove that like you know you can use sacrifice and set precedents. Richard Hart marketing claims were accurate. The projects are good investments regulatory [music] uh in another jurisdiction has authority and every other crypto founder can copy this strategy. They didn't determine that that was okay. The missing distinction is where most online arguments go totally wrong. The token is not necessarily the transaction. So, you have a token. It could be used in a lot of different ways. Some of the ways that that token is used could

be illegal. Some of them could not be illegal. It's not the token that's necessarily the problem. It's what you do with the token. You know, two people could hold the same token. One of them could bribe a judge and then have that would be an illegal action. The other guy could just use it to pay his rent because his landlord likes crypto. Whatever. The token is not necessarily the transaction. Modern crypto regulations increasingly separate three things. The code, the offering, and the continued relationship after it comes out, the token generation event, right? Did the project receive regulatory clarity? Of course, it did not. It It really didn't decide anything, so we're not going to spend a bunch of time being repetitive there. Does the ruling protect other crypto projects? Only in a limited degree. The decision may help another

defendant whose facts are similar, but that's it. If you're if you don't have a very similar case, it's not going to help you none. Why the Clarity Act still matters, right? The Richard Hart case shows the limitation of regula of regulating crypto one lawsuit at a time. Courts must answer all kinds of questions in order to have the authority. Which party is legally responsible? Which regulator had authority? What this particular arrangement and investment contract was? Stuff like that. So the final verdict is that Richard Hart did not merely survive a minor filing error. [music] He won significant case against the SEC. Every claim was dismissed. The SEC had an opportunity to keep it going and they didn't and they walked away. Final judgment favored the defendant and no settlement or penalty was imposed. That's a victory lap. The most

accurate conclusion is not that the court approved Hex, Pulse Chain, or Pulseex are permanently outside security laws, right? So, not everything about them is outside [music] of their jurisdiction, just the things that they alleged. All right, this is getting a little repetitive, so we will get back to what we were doing here. Let's take a look at our top gainers, top losers of the day. Shout out to Block Works. Wow, we did that in [music] a little over an hour. Y'all are still at it in the chat. Who else is here with me? It's nice to have that chat running like that on a Thursday when I know that the lifer is probably having his members paid member live stream right Aikido doing well up 67% humanity up 18% Ephi up 16% and top losers curve Dow APR coin

which was up a bunch yesterday and Convex Finance And I want to say, you know, guys, we will get through these times as we always had. There will be fun times ahead of us. Shout out to all of my day one people. All of you will be considered day one people when everybody comes rushing into crypto once again. And I'm sure this channel will find some influx of viewership. What just happened? Let's see what's going on with August 10th still. You got to be able to get closer than August 10th. It's the 13th. What is going on? I need to update this. It's not usually that far behind for the revenue. All right. Well, we won't bother with that. And you're entering into the underground crypto hangout of the night. I think we pretty successfully did what we were

supposed to do. Look at that. There's a town hall that's going to be live for Sunflower Land in like 15 minutes. Oh, no. You guys are good. Keep it going. It only helps the channels. No complaint [music] from me. Keep that chat running. Sunflower land. Still sunflowering. There's a lot of uh lot of hype going on actually around that Yakaman launch. Probably because the creators of Sunflower are launching it and they've just done such a good job with this this protocol that I think a lot of people are expecting them to be highly successful. with Yakaman as well. And you know, I'll be playing some DeFi games. Is anything anybody wants to get into the underground hangout part of the night? Let me know and we can jump into them. Let's check on those chickens. All these chickens need

a good smacking. Wake up. Oh, no food. We need to get some food here. Get some barley. Why does that seem so expensive? Did the price of barley drastically go up? take a hundred. And yes, I am I'm using flower to buy these because they're actually NFTTS in the game. And let's feed these chickens. Again, I've very much been enjoying Sunflower Land and I look forward to what they're going to do outside of this. See what kind of quests we got. All right, we could turn this one in. Who am I turning this into? Oh, it's the guy with the pirate hat. I think we should do do some digging here. Let's buy some shovels. Can we get some artifacts? More crabs and sand. What is that thing? Is that a stone? What is that thing? I don't know

what that is. Am I out of shovels? I am out of shovels. Well, that was fun. Marriage timeout corner. No, you guys are good. Run that chat up and keep uh keep me uh highly entertained. [sighs] I tell you, I woke up I had to get up early today and go do a job, get on somebody's roof and whatnot. And then I didn't really get much time to rest. I didn't get much sleep cuz we were trenching. And then uh passed out right before the stream. I woke up. It was 8:20 p.m. and I was like, "Oh, 10 minutes. Let's figure this out." But I didn't miss. Didn't oversleep. I didn't give you guys some reason why I couldn't make it. I showed up. So, I feel like that's reason enough to feel accomplished, right? really feel like they

really got to get some better games here. Okay, whatever that means. Player economies are not enabled. I really wish they'd bring back that festival in the game they had for the festival. I don't know why you'd get rid of that. That game was fire. No, no, no. I barely got any sleep. Had to get up early and go get up on one of my customers roof to clean their gutters. And then I never really got much sleep. passed out right before this the stream, like an hour and a half before a stream. I woke up, it was like 8:20 and I had to rush to make sure I was here for you guys. And then we did the stream and all that went with it. And then this is my first part here where I can take a deep

breath, come down from the the rushing excitement of doing the stream. Just doing some of these quests. Hopefully, I'll get some reward points. Felt like something was broken. I was not getting any rewards from doing all of these quests. Still short some sand. turn in this quest. Let's see. Do we ever get any points from Stella? Reward points. Hey, we actually are. All right, we got some shiny feathers, which is all what this season and this update is all about. Here. Back to the beach. Can we go in between these? No, we cannot. Pretty sure I have sunfish. I don't know why it's saying that. I don't. All right, that might be all I'm able to do there. Trying to stack these shiny feathers. I think I'm supposed to be stacking them, but I really don't want to give

up 60 eggs for him. Oh, marina wool. I definitely don't have any marina wool. Lots of anchovies, though. Oh, just got half a flower. Let's go. Bullish. Well, while I'm here at goblin goblin territory, I might as well sell all the junk. And I might as well do our cleaning of other farms. Let's do Reliable Jay's farm first here. Gotta be helpful to the fam. Shout out Reliable Jay. even if I haven't seen him here in a while. If you if you are not following Reliable Jay over on Twitter, I would I would really appreciate if you go follow him over on Twitter. See what other farms we going to we going to do here. Why do I feel like I'm missing somebody? I don't know. Maybe they just changed what their character looks like. Throwing me off. Check

out some of these people's very extra extravagant, you know, farms here. I want to get to the lava the lava island, but I'm not high enough level to go to the lava island. I think we just went to that farm and you know what it is. We came, we saw conquered, we did our educational I learned some things about the whole SEC case when it came to Richard Hart. I didn't know a lot about it and the deets of it. So, hey, when I'm learning, I know you guys got to be learning. Maybe it's stuff you care about, maybe it's not. That's why we rotate topics. [snorts] Everybody should have their their uh topic that they're most interested in highlighted at some point. And if not, then throw it in the Discord, throw it in the chat, and I

will make sure that your topic that you're most into gets highlighted. I'm like, the week of October 5th, should we have a bottom of the bare market party where we just play DeFi games and and don't don't take things too serious to celebrate what is supposed to be the bottom of the bare market. Of course, we'll still look at crypto. That goes unsaid. All right, let's go check out a different game. You're as beautiful as the first day I read the BTC white paper. That is a That's a good one. That's a great pickup line. Should use that everywhere you go. Tell them tell all the People, you're as beautiful as Bitcoin's white paper. All right, Chainers always with some random uh thing going on. Shout out to Chainers. Claim your place in some event they have going on.

If it requires me to buy something, I don't want to do it. Guardian of Chainers reward, you're in. I'm in 40th place. How is that even possible? A veil McKenzie. Who the heck is that? How am I in 40th place with zero points? Makes no sense. Collect any peas from a farm. All right. All right. Well, we need to get to the farm if we're going to win this event. All right. What should we plant? What should we plant? Apparently, we should be planting peas. Let's see. Where are the peas? Pretty sure we have peas somewhere. There they are. Did we win? Did we win the event yet? Credit to Chainers for always building though. like they always have something going on and they change it a lot. I don't know if that's just cuz that's where a lot

of their income, their revenue comes from here. RIP Peanut. I haven't heard that in a while. Oh, did I just sacrifice for CFB? Dang it. I didn't mean to do that. Apparently, it got me a bunch of rewards, though. I'll take it. I'll take some CFB. I needed I spent way too much on an upgrade. All right, two CFB and let's go to the event. Claim some XP here. We got XP points. It's weird that they put it in like a trading card package. We need to go to that Adam caster daily rewards. Link to trainers in the description if anybody wants to follow along with me at home. Stack some free B&B. hitting all the wrong buttons. What am I doing? What am I doing? We want to go to mini games. Oh, they moved it on me.

That's why. mess me up. All right, let's get that free item. Be done with trainers here. Oh, I just remembered all the stuff I got to go pull. It's going to be a long night of shipping. If you know, you know. Feel like it's taking forever to get to a,000 points. Just bring the people out so I can take them down. That's all I ask. They're trying to back me in a corner here, huh? Not today. All right, finally over a thousand points. Let's get our free item. And it is common fertilizer. Wish I got more than one though, but I'll take it. I needed that. We unlocked another weekly item. Strawberry seeds. Absolutely. Take that as well. All right, so we got some good stuff. That was well worth it. And let's see how we did in the

event. Are we still 40th? Oh, now we're number 45. Or wait, we're number 14. How could I be 14 on the leaderboard? That didn't even make any sense. What? How is that even possible? All right, I really need some corn. Can you just sell me some corn in CFB? They're always like hiding this corn and they want USDT for it. They know what they're doing here. Let's go to seeds. How about sort by currency? That would be nice. Got peas. See, look, you can buy peas in CFB. Why can't I buy corn in CFB? It's a racket. Like, why are they doing this to me? I guess eventually I'm going to have to bring a dollar onto the Polygon network and uh just buy some corn because waiting for them to sell it to me in CFB is ridiculous.

So featured rewards here. Dang, you get some good rewards. Never getting anywhere near first place. Holy crap, it's a lot of points. All right, guys. It was a fun stream. If you can't tell, I'm a little exhausted. I'll catch you guys in the next one. You know what it is. Stay underground. Stay crypto. Shout out to the love birds in the chat. Shout out to Struggle Heart who he's here for it. Thank you for everybody who came to the stream. Shout out prime minister. I didn't see cam today. It is a Thursday. So you know what that means. D5 Friday tomorrow. It's going to be a fun one. Stay underground. Stay crypto. And I will catch you in the next episode. Underground crypto out. Uh join that link to the Discord if you want to continue to chat. You

can always hit me up there.