XRP Community Lashes Out As SEC Gives Free Pass to Ethereum On Security Status

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As a long-term crypto investor with experience in following both Ethereum and Ripple closely, I can’t help but feel frustrated by the apparent bias displayed by the US Securities and Exchange Commission (SEC) in their treatment of these two projects. The recent suspension of the lawsuit challenging Ethereum’s security status comes just before the approval of the spot Ethereum ETF, which is certainly a cause for celebration within the Ethereum community. However, this development has not been met with the same enthusiasm from the XRP community.

As a researcher studying the cryptocurrency market, I’ve noticed an intriguing turn of events just prior to the Ethereum Exchange-Traded Fund (ETF) approval by the US Securities and Exchange Commission (SEC). The SEC surprisingly decided to suspend its ongoing lawsuit questioning Ethereum’s security classification. This news has sparked jubilation within the Ethereum community, but it hasn’t been met with favor among the XRP community. Instead, they have voiced their concerns over what they perceive as the SEC’s biased approach.

XRP Community Slams SEC for Its Biases

Bill Morgan, a notable figure in the XRP community, has fiercely criticized the US Securities and Exchange Commission (SEC) for allegedly unequal treatment between Ethereum (ETH) and Ripple (XRP). Morgan emphasizes that the SEC gave Ethereum a reprieve around six years after the Hinman speech, which brought clarification on Ethereum’s non-security status. He also pointed out that the disparate handling of ETH and XRP underscores the seemingly arbitrary nature of the SEC’s cryptocurrency regulations.

Ethereum’s second free pass from the SEC almost exactly 6 years after the Hinman free speech.

The distinction between how Ethereum and Ripple have been classified by the Securities and Exchange Commission (SEC) serves as a stark reminder of the subjective nature of their regulatory decisions in the cryptocurrency sphere.

— bill morgan (@Belisarius2020) June 19, 2024

Some individuals questioned the need for the SEC’s letter to ConsenSys, given Ethereum’s decentralized nature. Morgan added that the concept of decentralization is often overstated and unclear when it comes to determining whether a token qualifies as a commodity or a security.

Analyst Calls Ripple to Sue the SEC

Anonymous critic @digitalassetbuy has expressed vigorous disapproval towards the Securities and Exchange Commission’s (SEC) regulatory measures, drawing attention to the apparent disparity in how Ripple has been handled.

As an analyst, I’ve noticed that Ripple has expended more than $100 million in addressing regulatory concerns with the Securities and Exchange Commission (SEC) during the past three years, which sets it apart from Ethereum. Consequently, I’ve given this situation a label – ETHGATE – and consider the actions of the government to be questionable, leading me to advise top Ripple executives Brad Garlinghouse and Chris Larsen to file a lawsuit against the SEC and any other involved parties.

A potential advantage arising from the ongoing XRP lawsuit is the possibility of the SEC lessening the $2 billion penalty against Ripple. Such a development may serve as a catalyst, igniting a surge in XRP’s price direction towards $1.

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2024-06-19 08:13