SEC Halts Ethereum Lawsuit, XRP Community Outraged
XRP community criticizes SEC for unequal treatment compared to Ethereum. SEC’s suspension of Ethereum lawsuit sparks debate over crypto regulation fairness. The US Securities and Exchange Commission (SEC) chose to put on hold its lawsuit contesting Ethereum’s security status just before the spot Ethereum ETF’s approval. SEC is also conducting a close investigation on Ethereum [...]
- XRP community criticizes SEC for unequal treatment compared to Ethereum.
- SEC’s suspension of Ethereum lawsuit sparks debate over crypto regulation fairness.
The US Securities and Exchange Commission (SEC) chose to put on hold its lawsuit contesting Ethereum’s security status just before the spot Ethereum ETF’s approval. SEC is also conducting a close investigation on Ethereum 2.0 and clearing ETH from being classified as a security, as previously reported by ETHNews.
The XRP community, which has openly blasted the SEC for its biassed approach, has not been pleased with the outcome, even if the Ethereum community is applauding it.
XRP Community Slams SEC for Biases
Bill Morgan, a well-known member of the XRP community, has publicly attacked the US SEC for treating Ethereum and Ripple differently.
Morgan brought out that the SEC gave Ethereum a second pass almost six years after the Hinman speech, making it clear that the cryptocurrency is not a security. He insisted that the disparate treatment of ETH and XRP highlights the SEC’s capricious attitude toward cryptocurrency laws.
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
If Ethereum is really decentralized, several community members have wondered why the SEC needed to issue a letter to ConsenSys. According to Morgan, decentralization is a made-up idea and that nobody has ever made it evident how it decides whether a token is a security or a commodity.
Market Data and Ripple Settlement Controversy
Meanwhile, according to CoinMarketCap data, XRP is currently valued at about $0.4892, down 2.29% from the previous day. Still, it shows a bullish trend with a 1.35% increase throughout the last seven days.
As ETHNews reported earlier, the SEC pressed for more severe sanctions after rejecting Ripple’s $10 million settlement offer. The SEC contended that comparing this to the $4.47 billion settlement with Terraform Labs was deceptive and unsuitable in deciding fines.
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