In a recent interview, SEC chief Gary Gensler declined to answer a question about the confusion over the Ripple lawsuit. He gave the reason that ‘he is not allowed to talk about specific cases’. The question has since led to many questions about XRP and other crypto tokens as security.
SEC Chief Refuses to Answer About XRP vs ETH
In an interview today with Fox Business, SEC Chief literally dodged a question about the difference between Ripple and Ethereum using their tokens in public markets.
Interviewer Liz Claman asked: ‘Where do you draw the line to distinguish between a ‘security and a currency’,
To this vital question, Gary Gensler seemed hesitant to answer. However, he replied that ‘it is important for investors to get basic investor protection against fraud and manipulation’. “We are technology neutral, but these platforms must register with the SEC and do so within the law,” he added.
In the meantime, Attorney John Deaton thought Genlser’s answer to the question was ‘total nonsense’. He quoted that “there is no such rule prohibiting him from speaking about a specific project or a token.”
Deaton also stated that one of the SEC’s goals is to provide information about the organizations so that investors can make informed choices about their investments.
The mean look of @GaryGensler is because tens of thousands of retail #XRPholders refuse to stop getting him in the face with his questions @SECGov refuses to answer. And we’ve only just begun pic.twitter.com/rZ8r7CkLi2
— CryptoLaw (@CryptoLawUS) February 15, 2022
ETH vs XRP: Is SEC Biased?
SEC sued Ripple for being ignorant of warnings when they sold $1.3 billion worth of XRP. They broke the securities laws because the sales were not registered with the agency. SEC claims that XRP is not a currency, but a security.
Over time, there have been many debates about SEC officials’ statement that Ethereum is not considered a security. To which Ripple CEO Brad Garlinghouse has effectively confirmed that ETH has been given the green light from the authorities on XRP.
Bill Hinman, former SEC director, gave a speech in June 2018 outlining his view that Ether was not a security. This speech has been treated as a guideline for the crypto market. According to a report, the first 60 million ether were sold at that time to raise money for the Ethereum Foundation.
WHAT IS THE SEC HIDING?
Their fight to stop the release of the Hinman speech documents in court has become a blinking red light.
Enough is enough! Ask Congress to investigate the @SECGov†
CONNECT NOW https://t.co/GzHabguvh1 pic.twitter.com/zJXGfiWlvv
— CryptoLaw (@CryptoLawUS) January 22, 2022
However, the SEC has made it clear that “Hinman’s speech reflected his own views.”
On the other hand, there has been a massive surge in support for XRP in the Ripple lawsuit. Because investors believe that the SEC’s research is biased and that the laws are not the same for XRP and ETH.
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