- XRP supporters, led by attorney Bill Morgan, decry SEC’s apparent favoritism towards Ethereum, calling for equitable treatment.
- Controversy over Hinman’s speech intensifies debate; XRP community views it as preferential, demands legal action against SEC.
The crypto community is witnessing heightened tensions following the Securities and Exchange Commission’s (SEC) apparent decision to conclude its investigation into Ethereum. This development, announced by Consensys, the organization behind the MetaMask wallet, has not been well received by all, particularly within the XRP community.
Consensys communicated to the SEC earlier in June, seeking confirmation that the May approval of a spot Ethereum ETF was an indication of the regulatory clearance for Ethereum. This was interpreted by many as the end of the SEC’s scrutiny into what is one of the largest cryptocurrencies by market capitalization.
While this news has contributed to a recovery in cryptocurrency prices, which had been in decline, it has simultaneously ignited a wave of frustration among XRP supporters.
If you're wondering why the SEC concluded its investigation into #Ethereum relatively quickly compared to #Ripple and decided not to classify ETH as a security, but rather as a commodity, here's the explanation.
This outcome was influenced by powerful interests and investments… pic.twitter.com/V3PmImmA0r
— Vandell | Black Swan Capitalist (@vandell33) June 19, 2024
The core of the discontent stems from a long-standing rivalry between Ethereum and XRP, often referred to by the community as “ETHGate.” This term encapsulates the allegations that the SEC has shown favoritism towards Ethereum, which has seemingly come at the expense of XRP and other digital currencies.
Bill Morgan, XRP advocate, has publicly expressed his dissatisfaction with what he perceives as the SEC’s inconsistent regulatory actions.
According to Morgan, this recent decision marks yet another instance where Ethereum has received a “free pass” from the SEC. He and other members of the XRP community feel this reflects a broader pattern of arbitrary regulatory enforcement.
Ethereum’s second free pass from the SEC almost exactly 6 years after the Hinman free speech.
Ethereum’s and Ripple’s different treatment will forever show how arbitrary the SEC has been in crypto. https://t.co/Coxf6czO9r pic.twitter.com/WNcacVYhNE
— bill morgan (@Belisarius2020) June 19, 2024
The controversy is further fueled by the infamous Hinman speech, where former SEC Director William Hinman stated that Ethereum was not a security. This statement is now seen by many XRP supporters as setting a favorable precedent for Ethereum, while simultaneously exposing Ripple, the firm linked to XRP, to legal challenges.
Lawyer Bill Morgan criticizes SEC for favoring #Ethereum over #XRP, sparking more accusations of regulatory bias. CPAC lodges complaints against ex-SEC official William Hinman, questioning his ties to Ethereum and calling for investigations. Amidst SEC-Ripple lawsuit revelations,… pic.twitter.com/sNS6t3YCGP
— Collin Brown (@CollinBrownXRP) May 29, 2024
The response from the XRP community has been strong, with some calling for legal measures against the SEC. There are claims circulating that Ethereum’s favorable treatment is the result of its community’s financial influence on regulatory processes.
In other words, @Consensys doesn't feel like they should be sued the way @Ripple was…
Hey @ethereumJoseph just show them the piece of paper in your pocket. You'll be good! https://t.co/eNhZ01Yp58
— Digital Perspectives (@DigPerspectives) June 19, 2024
This situation highlights the complex and often contentious relationship between regulatory bodies and the market of cryptocurrencies.
As the debate continues, the ripple effects of this SEC decision are likely to impact discussions on cryptocurrency regulation and enforcement for some time.
