SEC Stops Lawsuit Against Ethereum XRP Community Upset

XRP Community Voices Concerns Over SEC’s Favoritism Towards Ethereum
Criticism from the XRP community towards the SEC has intensified following the recent suspension of a lawsuit against Ethereum, sparking debates on the fairness of crypto regulations.
The SEC’s decision to halt the lawsuit challenging Ethereum’s security status just before the potential approval of a spot Ethereum ETF has raised eyebrows. Additionally, the SEC has reportedly closed an investigation into Ethereum 2.0, further fueling concerns raised by the XRP community, as highlighted in a previous ETHNews report.
Bill Morgan, a prominent figure in the XRP community, publicly lambasted the SEC for its differential treatment of Ethereum and Ripple. He pointed out that Ethereum was given a second chance nearly six years after the Hinman speech, confirming its non-security status. This unequal treatment between ETH and XRP, according to Morgan, exposes the SEC’s inconsistent approach to cryptocurrency regulations.
The XRP community’s outrage over the SEC’s actions has been met with applause from the Ethereum community, underscoring the ongoing discord within the crypto space.
Addressing the notion of decentralization, some community members have questioned why the SEC felt the need to issue a letter to ConsenSys if Ethereum truly operates in a decentralized manner. Morgan dismissed the concept of decentralization as a mere facade, emphasizing the lack of clarity on how the SEC determines whether a token qualifies as a security or a commodity.
In the midst of these controversies, market data reveals that XRP is currently valued at approximately $0.4892, experiencing a slight decline of 2.29% from the previous day. Despite this setback, the cryptocurrency has shown a bullish trend with a 1.35% increase over the past week.
Meanwhile, the SEC’s rejection of Ripple’s $10 million settlement offer has stirred further debate, particularly in light of the stark contrast with the $4.47 billion settlement reached with Terraform Labs. Critics argue that the discrepancy in fines imposed by the SEC undermines the agency’s credibility and consistency in enforcing regulations.
As tensions continue to escalate between the XRP community and the SEC, the future of crypto regulations remains uncertain, with stakeholders closely monitoring developments in the Ethereum and Ripple ecosystems.