The Securities and Exchange Commission (SEC) is likely to close its investigation into Ethereum, according to a recent announcement by Consensys, the developer behind the MetaMask wallet.
The company revealed that it sent a letter to the SEC in early June seeking confirmation that the May approval of a spot Ethereum ETF signaled the end of the regulatory case against the major altcoin.
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The development has sparked mixed reactions on the crypto market. While Ethereum's apparent regulatory clearance led to a rebound in crypto prices after a prolonged decline, the XRP community has reacted with frustration and skepticism.
Ethereum gets SEC nod, XRP fans see red
As one may recall, there has been a long-standing "feud" between XRP and ETH, centering on allegations that Ethereum received preferential treatment from the SEC, to the detriment of XRP and other cryptocurrencies, often referred to as "ETHGate."
Bill Morgan, a prominent XRP enthusiast and attorney, expressed his dissatisfaction with the SEC's preferential treatment of the main altcoin. He noted that the recent decision marks Ethereum's second "free pass" from the SEC, highlighting what he sees as arbitrary and inconsistent regulatory practices.
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
The controversy surrounding the Hinman speech, in which former SEC Director William Hinman stated that Ethereum was not a security, is a key point of contention. Morgan believes that this speech set a precedent that unfairly benefited ETH, while leaving Ripple, the company associated with XRP, open to legal challenges.
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Other XRP supporters echoed these sentiments, with some calling for legal action against the SEC and alleging that the Ethereum community used financial influence to secure favorable regulatory outcomes.