Ripple CTO David Schwartz has recently posed a thought-provoking question to the U.S. Securities and Exchange Commission (SEC) regarding the security status of Ethereum. This question comes in the midst of an ongoing battle between Ripple and the SEC, leading to further discussions within the crypto community about whether the SEC has a favorable stance towards Ethereum.
The controversy surrounding Schwartz’s question began with a recent tweet from the SEC. Earlier this week, fake news circulated claiming that the SEC had approved a Bitcoin ETF, causing a temporary surge in Bitcoin’s price. However, the SEC quickly responded with a tweet cautioning against believing any other source but themselves. Schwartz took this opportunity to inquire whether the SEC considers individuals trading Ethereum on digital platforms to be engaged in the sale of securities. He expressed his desire for an official response from the SEC, as he sees the regulatory agency as the most reliable authority on the matter.
David Schwartz has been actively engaging with the XRP community while the battle between Ripple and the SEC continues. In addition to this ongoing legal battle, Schwartz has been working on developing the XRP Ledger as a lending platform for tokenized real-world assets.
Unsurprisingly, Schwartz’s comment gained significant attention from the crypto community, leading to various reactions from members. Tony Edward, the host of the Thinking Crypto podcast, shared a gif depicting SEC Chair Gary Gensler’s hypothetical reaction to questions about Ethereum. The post humorously suggested that Gensler might choose to avoid or evade questions related to Ethereum. Pro-XRP lawyer Fred Rispoli also responded to Schwartz’s post, noting that according to the SEC’s filings before a federal judge in their case in S.D. Cal., the SEC has not made a decision regarding the exact question Schwartz posed.
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The ongoing Ripple vs. SEC battle has sparked a debate within the crypto community regarding the SEC’s approach to determining the security status of different cryptocurrencies, especially Ethereum. Many individuals believe that the SEC has established a regulatory environment that benefits Ethereum at the expense of other cryptocurrencies.
One example that highlights this perceived bias is a speech delivered by William Hinman, the former Director of the SEC’s Corporation Finance division, on June 14, 2018. During this speech, Hinman controversially classified both Bitcoin and Ethereum as non-securities. Despite current SEC Chair Gary Gensler’s assertion that only Bitcoin falls outside the agency’s regulatory scope, many within the crypto space continue to believe in the SEC’s favorable bias towards Ethereum over other digital assets.
It is essential to note that Crypto News Flash, the source of this information, does not endorse or take responsibility for the content mentioned. Readers are always encouraged to conduct their own research and exercise caution when dealing with cryptocurrencies.
