XRP Community Lashes Out As SEC Gives Free Pass to Ethereum On Security Status
Highlights
- XRP community fumes as SEC withdraws security lawsuit against Ethereum ahead of ETF approval.
- Bill Morgan criticized the SEC for its unequal treatment of Ethereum and Ripple.
- Analysts want Ripple to sue the SEC and others involved for three years of legal stress.
Just before the approval of the spot Ethereum ETF, the US SEC decided to suspend its lawsuit challenging Ethereum’s security status. While the Ethereum community is certainly cheering the development, it hasn’t gone well with the XRP community which has come lashing out against the SEC for its biased approach.
XRP Community Slams SEC for Its Biases
Bill Morgan, a prominent member of the XRP community has come lashing out at the US SEC while calling out the unequal treatment between Ethereum and Ripple. Morgan has highlighted that Ethereum received a second pass from the SEC nearly six years after the Hinman speech, which provided clarity on the non-security status of Ethereum. He further stated that the different treatment for ETH and XRP highlights the SEC’s arbitrary approach towards crypto regulations.
Ethereum’s second free pass from the SEC almost exactly 6 years after the Hinman free speech.
Ethereum’s and Ripple’s different treatment will forever show how arbitrary the SEC has been in crypto. https://t.co/Coxf6czO9r pic.twitter.com/WNcacVYhNE
— bill morgan (@Belisarius2020) June 19, 2024
Some also argued that since Ethereum is decentralized, why did the SEC have to write a letter to ConsenSys in the first place? Morgan stated that decentralized is all a made-up factor and no one has ever explained how it categorizes whether a token is a commodity or a security.
Analyst Calls Ripple to Sue the SEC
Pseudonymous analyst @digitalassetbuy has voiced strong criticism against the SEC’s regulatory actions, while contrasting them with the treatment received by Ripple.
The analyst pointed out that Ripple had spent over $100 million so far to deal with the SEC’s regulatory issues over the last three years, unlike Ethereum. Thus, the analyst labeled the government’s actions as criminal suggesting the top Ripple executives – Brad Garlinghouse and Chris Larsen – to file a lawsuit against the SEC and others involved while calling it the ETHGATE.
One positive development in the XRP lawsuit could be that the SEC might reduce the $2 billion fine on Ripple. Any positive development could kickstart the XRP price rally towards $1.
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