In December 2020, U.S Securities and Exchange Commission (SEC) filed a bombshell lawsuit against the world’s one of the top ten crypto assets Ripple. The SEC alleges that the asset issued XRP as non-registered security and violated SEC norms. Ripple’s legal team including James K. Filan, Soloman, Reid Figel, Nicole Tatz slammed SEC’s recent response to the motion that could expose regulator employees XRP trading history.
The team also questioned the legal status of Ethereum and Bitcoin. But the SEC refuses to give further justifications to XRPs requests for claims. Followed by Ripple, SEC also threatened to sue over popular crypto exchange Coinbase. While SEC didn’t question other platforms offering a lending feature. The SEC refused to give clear clarification here as well. This is how the CEO of Coinbase Armstrong reacted
Will The SEC Lawsuit Turn Against Ethereum 2.0?
Jeremy Hogan recently shared a post on possible statements that Gary Gensler, a Chairman of the US Securities and Exchange Commission would address to the senate. It was mentioned in the statement that technologies must come under a regulatory framework to continue to be a catalyst for change.
While SEC screws Ripple and Coinbase, it is soft on Ethereum and crypto lender Aave built on ETH. XRP and Coinbase users point to William Hinman, former director of the Securities and Exchange Commission’s Division of Corporation Finance. Who has business ties to Ethereum before and after SEC tenures? Because in 2015, Ethereum’s “Anyone to Purchase” ICO program was not considered a violation of SEC norms. ETH legal team went into the SEC in June 2018 to lobby for Ethereum not to be considered as security. Their efforts paid off! Hinman declared Ether is not security.
Now, the XRP legal team is trying hard to tackle the SEC’s lawsuit against ripple. The intensity of this case could also put other crypto networks at risk! As this case is slowly turning the tide against ETH 2.0. Yes, once Ethereum‘s upgrade ETH 2.0 goes live on the mainnet, the SEC might ask for clarification on Blockchain’s network status. In order to be more transparent with its own legal arguments against Ripple and Coinbase case.
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