Why Did SEC Drop Ethereum Case? XRP Community Demands Answers!
The recent decision by the US Securities and Exchange Commission (SEC) to withdraw its lawsuit against Ethereum has sparked significant backlash within the XRP community, highlighting perceived inconsistencies in regulatory treatment.
Unequal Treatment Draws Criticism
Bill Morgan, a prominent figure in the XRP community, publicly criticized the SEC for what he perceives as unequal treatment between Ethereum and Ripple. Morgan pointed out that Ethereum received a second chance from the SEC, notably six years after a speech by former SEC official William Hinman provided clarity on Ethereum’s status as a non-security. This decision, according to Morgan, underscores the SEC’s arbitrary approach to crypto regulation, contrasting sharply with its treatment of Ripple.
Ethereum’s Regulatory Advantage
The SEC’s recent move to drop the lawsuit against Ethereum comes just before the anticipated approval of a spot Ethereum Exchange-Traded Fund (ETF). While Ethereum supporters welcome this regulatory relief, critics argue it highlights a double standard. They question why Ethereum, deemed decentralized, required clarification from the SEC while Ripple faced prolonged legal scrutiny.
Calls for Legal Action by Ripple
Analysts and community members alike have called for Ripple to take legal action against the SEC, citing three years of regulatory pressure and over $100 million in associated costs. Analysts, such as @digitalassetbuy, have characterized the SEC’s actions as unjust, suggesting Ripple’s executives consider legal recourse to address what they perceive as biased treatment.
Potential Impact on XRP’s Future
Despite the ongoing regulatory challenges, the XRP community remains optimistic about potential positive developments in Ripple’s legal battles. Speculation suggests a possible reduction in the SEC’s proposed $2 billion fine against Ripple, which could prompt a resurgence in XRP’s market value, potentially rallying towards the $1 mark.
At the time of publication, Ripple was trading at $0.4933, reflecting a decrease of 0.07% over the past 24 hours as per coinpedia markets data.
The SEC’s handling of Ethereum and Ripple’s regulatory status has stirred controversy within the crypto community. While Ethereum celebrates regulatory clarity, Ripple supporters decry what they perceive as unfair treatment and call for legal action. As the situation unfolds, stakeholders continue to monitor developments that could significantly impact both Ripple’s legal standing and XRP’s market performance.
