The decision to conclude SEC’s Ethereum investigation strengthens Ripple’s defense in the XRP lawsuit and highlights inconsistencies in the case.
The U.S. Securities and Exchange Commission (SEC) has opted to discontinue its investigation into Ethereum, which could substantially bolster Ripple’s position in its ongoing legal dispute. MetaLawMan, a pro-XRP counsel, has emphasized that this development has sparked a surge of optimism among XRP supporters. However, numerous experts contend that the SEC’s decision to conclude Ethereum’s security status investigation highlights the inconsistencies in the regulatory approach to various cryptocurrencies.
Ripple’s Position is Strengthened by SEC’s Position on Ethereum
Ripple’s advocates are particularly perturbed by the SEC’s decision to suspend the investigation into Ethereum. MetaLawMan, a pro-XRP lawyer, James Murphy, has noted that the SEC’s actions could bolster Ripple’s defense in its litigation with the regulatory body.
Murphy asserts that the SEC’s inconsistent treatment of digital assets is becoming more apparent. In contrast to its posture on Ethereum, Murphy recently emphasized the SEC’s contradictory arguments in the Coinbase hearing in a recent X post.
He stated that the SEC has consistently and effectively argued in the Coinbase hearing that “Digital asset + Ecosystem = Security.” Nevertheless, the SEC determined that Ethereum was not a security, although it exhibited comparable conditions. He has criticized the SEC for its dual approach in two cases, describing it as “embarrassing.”
In the interim, the pro-XRP lawyer’s comments coincide with Ripple’s legal team’s preparations for a prospective appeal in their case. Ripple’s assertion that the SEC’s regulatory approach is inconsistent may be strengthened by abandoning the Ethereum investigation.
MetaLawMan believes this development could strengthen Ripple’s position in future legal proceedings. He anticipates elaborating on this matter during a forthcoming Crypto Town Hall event.
Increase In Presence of pro-XRP Sentiment Amid Criticism
The SEC’s decision regarding Ethereum has strengthened Ripple’s legal position and led to criticism of the regulatory body’s management of cryptocurrency cases. Bill Morgan, an additional attorney who advocates for XRP, has also expressed dissatisfaction with the SEC’s disparate strategies regarding Ethereum and Ripple. He characterized the SEC’s perceived favorable treatment of Ethereum as “arbitrary,” indicating a pattern of inconsistency in the agency’s decisions.
Furthermore, Morgan’s frustration transcends the confines of the United States. He recently criticized the Australian Securities and Investments Commission (ASIC) for allegedly following the SEC’s lead on crypto regulations.
He has criticized the ASIC for failing to “take notes” from the SEC. He has referred to the U.S. Securities and Exchange Commission as the “most regressive” regulatory authority in crypto regulations. He even criticized the Australian government and Prime Minister Anthony Albanese’s stance on digital assets.
In the interim, this perceived regulatory inconsistency significantly affects the digital asset ecosystem. Supporters of Ripple contend that the SEC’s evolving posture on Ethereum may substantiate the ruling from the XRP case last summer. It implies that digital assets may be exempt from the definition of securities, which could influence the development of future regulations.
