XRP community criticizes SEC’s perceived bias as Ethereum receives a second pass, questioning regulatory consistency.
Ripple has spent over $100M on SEC legal battles, highlighting disparity in treatment compared to Ethereum.
SEC’s suspension of Ethereum lawsuit sparks decentralization debate, impacting Ripple’s ongoing legal case.
The U.S. Securities and Exchange Commission (SEC) has suspended its lawsuit challenging Ethereum’s status as a security, marking the second time in six years that Ethereum has received a favourable decision from the SEC.
This development, which coincides with the anticipated approval of a spot Ethereum ETF, has been welcomed by the Ethereum community but has raised significant discontent within the XRP community.
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
XRP Community’s Response
Members of the XRP community, notably Bill Morgan, have criticised the SEC for what they perceive as inconsistent regulatory treatment between Ethereum and Ripple. Morgan pointed out that Ethereum received a second clearance from the SEC nearly six years after the Hinman speech, which clarified Ethereum’s non-security status. This contrasting treatment has led to accusations of arbitrary and biased regulatory practices by the SEC.
Criticism of SEC’s Actions
Analysts and members of the crypto community have voiced strong criticisms against the SEC’s actions. Crypto analyst, digitalassetbuy on X, highlighted that Ripple has spent over $100 million addressing SEC’s regulatory challenges over the past three years, in stark contrast to Ethereum’s experience. This analyst labelled the SEC’s approach as unfair and suggested that Ripple executives Brad Garlinghouse and Chris Larsen consider legal action against the SEC and others involved, coining the term “ETHGATE.”
I'll say it for the 1000th time. We are not done with exposing the ETHGATE/SEC corruption until there is a level playing field. There is nothing level about letting Ethereum off the hook within months while keeping @ripple in a lawsuit for over three years at hundreds of… https://t.co/PbdRFirhLI
— Digital Asset Investor (@digitalassetbuy) June 19, 2024
Decentralization Debate
The issue of decentralization has also been a point of contention. Critics have questioned why the SEC felt the need to correspond with ConsenSys if Ethereum is truly decentralized. Morgan argued that the concept of decentralization is often used ambiguously and lacks clear criteria for determining whether a token is a commodity or a security.
Potential Positive Outcomes for Ripple
Despite the controversy, there is a potential positive development for Ripple in its ongoing legal battle. Speculation suggests that the SEC might reduce the $2 billion fine imposed on Ripple. Such a development could positively impact XRP’s market performance, potentially driving its price towards $1.
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The post Ethereum Gets Another Free Pass as the Legacy of ETHGate Grows Unchecked, XRP Army Vexed appeared first on Crypto News Land.
