Ripple’s latest revelation has ignited a blaze, shining a spotlight on the SEC’s controversial stance towards digital currencies. With Ripple raising an accusing finger at the SEC for what they see as an unequal application of the Howey Test, the Ethereum saga, once again, is under scrutiny.
Ripple’s Smug Point
Esteemed crypto sleuth, Mr. Huber, has taken to platform X to share his insights on this bubbling controversy. He suggests that while Ripple has brazenly highlighted the SEC’s inconsistent approach toward most cryptocurrencies, Ethereum seems to have received preferential treatment.
Huber goes on to insinuate potential foul play, hinting at the possibility of Ethereum’s inner circle influencing the SEC’s decisions. Whether by deliberate intent or sheer oversight, the SEC’s differential attitude has raised eyebrows.
It's great how Ripple smugly points out that the SEC is applying Howey to all cryptocurrencies except Ethereum. They are not talking about how the Ethereum crooks were bribing the SEC, because maybe the monopoly for Ethereum really is just inconceivable clumsiness. 😂 pic.twitter.com/JD9pDOYOnH— Mr. Huber🔥🦅🔥 (@Leerzeit) September 6, 2023
The Courtroom Drama Unfolds
A court filing screenshot from Ripple, shared by Mr. Huber, reflects the digital currency giant’s frustration. Ripple underscores the pressing need for the SEC to decide on the legitimacy of its prosecution of Ripple executives, Mr. Garlinghouse and Mr. Larsen.
According to Ripple, the SEC’s claim of this case being a mere “application of a well-settled legal test” seems dubious. The digital asset industry’s emerging landscape and the SEC’s attempts at regulation are viewed skeptically by Ripple. The company asserts that the SEC itself has shown inconsistency in determining the classification of digital assets, hinting at a lack of clear direction.
The SEC-Ethereum Controversy
For the uninitiated, the SEC’s relationship with Ethereum has been a topic of hot debate. Ethereum’s initial coin offering (ICO) in 2014 raised questions about whether its token, Ether, should be classified as a security. A security classification would place Ethereum under a stringent regulatory framework, impacting its operations and utility.
In a surprising turn, in 2018, the SEC declared that Ether was not a security, citing its decentralized structure. This announcement was met with mixed reactions, leading to allegations and speculations of undue influence and preferential treatment. Now five years later, with Ripple’s XRP having been declared non-security by the Judge in the infamous SEC case, this Ethereum controversy is still very much a hot topic in the crypto community.
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