In a recent interview SEC Chief Gary Gensler refused to answer a question regarding the confusion over the Ripple lawsuit. He cited the reason that ‘he is not allowed to talk about specific cases’. The question since has led to lot of questions around XRP and other crypto tokens as a security.
SEC Chief refuses to reply over XRP vs ETH
In an interview today with fox business, SEC Chief literally dodged a question concerning the difference between Ripple and Ethereum using their tokens in public markets.
Interviewer Liz Claman asked, ‘Where do you draw the line to distinguish between a ‘security and a currency’,
To this vital query, Gary Gensler looked hesitant to reply. However, he responded that ‘it is important for investors to get basic investor protections against fraud and manipulation’. ‘we are technology-neutral but these platforms need to register with the SEC and do it within the law,’ he added.
Meanwhile, Attorney John Deaton found Genlser’s response to the question as ‘total Nonsense’. He cited that ‘there is no such rule that disallows him from speaking about a specific project or a token’.
Deaton also stated that one of the SEC’s goals is to provide information about the organizations so that investors can settle on informed choices about their investments.
The peevish look from @GaryGensler is because tens of thousands of retail #XRPholders refuse to stop getting in his face with the questions his @SECGov refuses to answer. And we’ve only just begun 👇🏻 pic.twitter.com/rZ8r7CkLi2
— CryptoLaw (@CryptoLawUS) February 15, 2022
ETH vs XRP: Is SEC biased?
SEC slapped Ripple with lawsuit citing its ignorance against warnings when they sold $1.3 billion worth of XRP. They were violating securities laws as the sales weren’t registered with the agency. SEC claims that XRP is not a currency, but a security.
Over time, there have been many debates around SEC officials’ statement of not counting Ethereum as a security. To which Ripple CEO Brad Garlinghouse has effectively affirmed that ETH was given green light by the authorities over XRP.
Bill Hinman, former director of SEC, gave a speech in June 2018 depicting his views that Ether was not a security. This speech has been treated as the guidance for the crypto market. As per a report, at that time first 60 million ether were sold to raise funds for the Ethereum Foundation.
WHAT IS THE SEC HIDING?
Their fight to stop release of the Hinman speech documents in court has become a flashing red light.
Enough is enough! Demand Congress investigate the @SECGov!
— CryptoLaw (@CryptoLawUS) January 22, 2022
However, SEC has cleared that ‘Hinman’s speech reflected his own views’.
On the other hand, there has been a massive increase in support XRP in Ripple lawsuit. As investors believe that SEC’s investigation has been biased and laws have not been same for XRP and ETH.