The SEC vs Ripple Lab lawsuit took an interesting turn on April 6th when Ripple counsel requested access to SEC’s internal documents discussing around Bitcoin and Ethereum’s Asset status. The judge granted the favor despite SEC protesting against it, leading many to believe that XRP might pass the test as well which made SEC declare ETH token as non-security.
In January we asked “How does the SEC explain telling the public that BTC and ETH are not securities, then turning around and alleging the opposite is true for XRP?” https://t.co/8KVBuSi1i7
Perhaps we’ll start to get some answers now.
— Stuart Alderoty (@s_alderoty) April 6, 2021
SEC in its lawsuit has claimed that Ripple violated security laws by offering XRP tokens without registering it under Section 5 of the Securities Act. The regulatory agency claimed that XRP tokens are offered in the form of an investment contract making it liable under securities law.
However, Ripple’s legal counsel argued that the definition of ‘investment contract’ is not definitive and the fact that SEC allowed for Bitcoin and Ether transactions made them think XRP didn’t violate the securities law either.
Would Ether’s (ETH) Asset Status Come Under Scanner Again?
The SEC back in 2018 claimed that Ether is not seen as a security since the network is decentralized enough. There were a lot of discussions around Ether pre-mine and what made the SEC deem ETH token as non-security despite a pre-mine, to which William Hinman, the former SEC …
Story continues on CoinGape