XRP Lawsuit: SEC’s Ethereum Investigation Conclusion Bolsters Ripple’s Position
XRP Lawsuit: The U.S. SEC has decided to drop its investigation into Ethereum, a move that could significantly strengthen Ripple’s stance in its ongoing legal battle. This development, as highlighted by the pro-XRP lawyer MetaLawMan, has ignited a wave of optimism among XRP supporters. On the other hand, several experts suggest that the SEC’s decision to conclude Ethereum’s investigation on its security status underscores the inconsistencies in the regulatory approach towards different cryptocurrencies.
SEC’s Stance on Ethereum Bolsters Ripple Position
The SEC’s decision to halt its investigation into Ethereum is raising eyebrows, especially among Ripple’s defenders. James Murphy, known as MetaLawMan, a pro-XRP lawyer, pointed out that the SEC’s actions could fortify Ripple’s defense in its lawsuit with the regulatory body.
According to Murphy, the SEC’s inconsistent treatment of digital assets is becoming increasingly evident. In a recent X post, Murphy highlighted the SEC’s contradictory arguments in the Coinbase hearing compared to its stance on Ethereum.
He said that the SEC has continuously and successfully argued that “Digital asset + Ecosystem = Security” in the Coinbase hearing. However, in the Ethereum case, which also exhibits similar conditions, the SEC concluded it was not a security. He has slammed the SEC for its dual approach in two cases calling it “embarrassing”.
Meanwhile, the pro-XRP lawyer’s remarks come at a time when Ripple’s legal team is preparing for a potential appeal in their case. The dropped investigation into Ethereum could lend weight to Ripple’s argument that the SEC’s regulatory approach lacks consistency.
Notably, MetaLawMan believes this development could bolster Ripple’s position in any future legal proceedings. He is expected to discuss this further in an upcoming Crypto Town Hall event.
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Pro-XRP Sentiment Grows Amid SEC Criticism
The SEC’s decision regarding Ethereum has not only bolstered Ripple’s legal standing but has also fueled criticism of the regulatory body’s handling of cryptocurrency cases. Bill Morgan, another pro-XRP lawyer, has also criticized the SEC’s different approaches towards Ethereum and Ripple. He referred to Ethereum’s perceived favorable treatment by the SEC as “arbitrary,” pointing to a pattern of inconsistency in the agency’s decisions.
In addition, Morgan’s frustration extends beyond U.S. borders. He recently criticized the Australian Securities and Investments Commission (ASIC) for reportedly following the SEC’s lead on crypto regulations.
While slamming the ASIC to “take notes” from the SEC, he has called the U.S. Securities and Exchange Commission the “most regressive” regulatory body when it comes to crypto regulations. He even criticized the Australian Prime Minister Anthony Albanese and the Australian government for their approach towards digital assets.
Meanwhile, this perceived regulatory inconsistency has significant implications for the digital asset ecosystem. Ripple supporters argue that the SEC’s evolving stance on Ethereum may validate the ruling from last summer in the XRP case. It suggests that digital assets can potentially fall outside the definition of securities, thereby impacting how future regulations are framed.
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