A follower of the crypto market is aware of the dispute between Ripple and the US Securities and Exchange Commission (SEC), and the latter presents an argument that Ripple is a security and is subject to the SEC’s laws and that its activity is in violation of legal procedures.
Ripple’s lawyers argued that Ripple is just like Ethereum, but the accounting and legal follow-up focused on Ripple only, not Ethereum.
This question returned again to the media, as many media outlets highlighted it again, especially after avoiding a direct answer from “Gary Gensler,” Chairman of the Board of Directors of the SEC.
SEC Chairman Fails to Clarify SEC’s Position on Ethereum:
Gensler’s failure to answer the question regarding Ethereum’s regulatory status highlights the importance of the problem.
As a professor at the Massachusetts Institute of Technology in 2018, he suggested that Ethereum should be considered a security given that he saw the light of day with an initial coin offering (ICO), his statement at the time:
I think when Ethereum was launched in 2014, it will pass the test [Howey] This.
So it is a security.
The failure to confirm his previous position on the world’s second largest digital currency isn’t the only interesting thing about this situation.
Gensler’s response could have provided greater clarity about his stance on Ripple and other cryptocurrencies.
Ripple and SEC case:
Analysts believe that Gensler avoided repeating his previous position on Ethereum due to an ongoing legal dispute between the SEC and Ripple, where the authority accused the payment processor of selling unregistered XRP securities.
In a much publicized legal battle, Ripple asserts that its digital currencies are not securities.
Unlike an Ethereum ICO, Ripple was launched directly without going through an ICO.
It is worth noting that Gensler’s predecessor, Jay Clayton, emphasized during his tenure that Ethereum was not a guarantee.
When asked if he thinks Ethereum should be viewed as a security and security, Gensler replied:
I will not talk about this issue.
The SEC will not participate in public forums to talk about any single project.
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