The U.S. Securities and Exchange Commission (SEC) has once again found itself in the crosshairs of the XRP community. The recent decision by the SEC to drop its lawsuit against Ethereum just ahead of the approval of a spot Ethereum Exchange-Traded Fund (ETF) has sparked a wave of criticism and anger among XRP supporters. Prominent community member Bill Morgan and several analysts are calling out the SEC for its apparent double standards, advocating for Ripple to take legal action against the regulatory body.
The SEC’s announcement to suspend its lawsuit against Ethereum’s security status has been received with cheers by the Ethereum community, but it has provoked a strong backlash from the XRP camp. Just as Ethereum stands on the brink of having a spot ETF approved, the SEC’s decision to back off from challenging its security status has been viewed as a significant regulatory victory for Ethereum. This development, however, has not sat well with the XRP community, which has long felt targeted by the SEC’s actions.
Bill Morgan, a well-known figure within the XRP community, voiced his outrage over what he sees as the SEC’s biased treatment between Ethereum and Ripple. According to Morgan, the SEC’s decision to grant Ethereum a “second free pass” is a glaring example of regulatory inconsistency. He pointed out that this leniency comes almost exactly six years after the infamous Hinman speech, which initially clarified that Ethereum was not to be classified as a security.
Morgan’s criticisms were sharp, accusing the SEC of having an arbitrary approach to crypto regulation. He argued that Ethereum’s continued favorable treatment, despite its decentralized status, reflects a double standard. The fact that the SEC previously had to issue a letter to ConsenSys regarding Ethereum’s status raises questions about the true nature of its decentralization, Morgan noted. He contends that the criteria for defining a token as a security or a commodity remain ambiguously applied.
Adding to the chorus of discontent, pseudonymous analyst @digitalassetbuy suggested that Ripple should sue the SEC in response to what he describes as “criminal” actions by the regulatory body. The analyst highlighted the financial and legal toll on Ripple, noting that the company has spent over $100 million over the past three years dealing with the SEC’s allegations. In stark contrast, Ethereum has faced far fewer legal hurdles.
The analyst coined the term “ETHGATE” to describe the perceived preferential treatment Ethereum has received and argued that Ripple’s top executives, Brad Garlinghouse and Chris Larsen, should consider filing a lawsuit against the SEC and other involved parties. This move, according to the analyst, would not only seek justice for Ripple but also expose the inconsistencies in the SEC’s regulatory approach.
Despite the palpable frustration within the XRP community, there could be a silver lining in the ongoing legal battle between Ripple and the SEC. Some speculate that the SEC might reduce its proposed $2 billion fine on Ripple. Such a development could act as a catalyst for a significant rally in XRP’s price, potentially pushing it towards the $1 mark. This optimism stems from the possibility that resolving regulatory uncertainties could pave the way for increased investor confidence and renewed interest in XRP.
The recent developments underscore the urgent need for clearer regulatory guidelines in the cryptocurrency space. The contrasting treatment of Ethereum and Ripple highlights a broader issue of regulatory ambiguity that has long plagued the crypto industry. For market participants, the SEC’s actions serve as a stark reminder of the unpredictability of regulatory environments and the potential impacts on digital asset valuations and market dynamics.
As the dust settles from the SEC’s decision to withdraw its lawsuit against Ethereum, the XRP community remains resolute in its quest for fair treatment. The calls for Ripple to sue the SEC reflect a broader demand for consistency and transparency in crypto regulations. Whether Ripple will pursue legal action remains to be seen, but the unfolding events will undoubtedly shape the future trajectory of both Ripple and XRP. Investors and community members alike will be watching closely to see how these developments impact XRP’s market performance and regulatory landscape.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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