Ripple CLO Uncovers Key Grey Area In SEC’s U-Turn On Ethereum Probe

Maxwell Mutuma
June 20, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Ripple CLO Reveals What Next With Cross Appeal Against SEC

Highlights

  • Ripple CLO Stuart Alderoty highlights ambiguities in the SEC's recent decision regarding Ethereum transactions and services.
  • The SEC has ended its investigation into Ethereum 2.0, causing debates about its regulatory consistency.
  • Bill Morgan criticized the SEC for giving Ethereum preferential treatment.

Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has pointed out significant ambiguities in the SEC’s recent decision regarding Consensys, a major Ethereum developer. This decision raises questions about the SEC’s stance on Ethereum transactions and related services like MetaMask and staking.

Advertisement
Advertisement

Ripple CLO Questions SEC’s Inconsistent Crypto Stance

The SEC announced it would close its investigation into Ethereum 2.0, ending a probe that had generated considerable interest. The decision followed a letter from Consensys, the company behind MetaMask, requesting confirmation that the SEC’s approval of Ethereum-based ETFs meant Ethereum would be considered a commodity.

Ripple CLO highlighted the SEC’s decision’s lack of clarity, seemingly contradicting previous assertions that digital assets and ecosystems should be classified as securities. His comments reflect broader concerns within the cryptocurrency community about the SEC’s regulatory framework and its application to various blockchain technologies.

An earlier report by Coingape pro-XRP lawyer James Murphy stated that this inconsistency could strengthen Ripple’s position in its lawsuit. He noted that the SEC’s argument in the Coinbase hearing—that digital assets equate to securities—seems undermined by its latest stance on Ethereum. This dual approach has led to criticism and calls for more transparent and consistent regulatory guidelines.

Advertisement
Advertisement

Bill Morgan Criticizes SEC’s Unequal Crypto Treatment

Bill Morgan, a member of the XRP community, has criticized the SEC for what he sees as unequal treatment between Ethereum and Ripple. He pointed out that Ethereum has received favorable treatment since the Hinman speech, which declared it a non-security. Morgan argues that this preferential treatment highlights the SEC’s arbitrary approach to crypto regulation.

Morgan further questioned why the SEC needed to correspond with Consensys if Ethereum is decentralized. He argued that the criteria for determining whether a token is a commodity or security still need to be clarified and inconsistently applied. This sentiment is echoed by many in the cryptocurrency industry seeking clearer regulatory standards.

Also Read: Ripple CLO Stuart Alderoty Condemns SEC’s Unfair Tactics in XRP Vs. SEC Lawsuit

 

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.