Analysts at nypost.com called the SEC case against Ripple “a bit of double standards.”
During the $ 2.5 trillion crypto blockchain hearings in Congress, analysts at nypost.com noted, it got little idea of how little the U.S. government knows about technology that could change the way we do business. A fuller picture of “this extreme recklessness” is being played out in lower Manhattan federal court in the Securities and Exchange Commission v. Ripple case.
The experts emphasized:
This will likely determine the degree to which the burgeoning crypto industry is regulated, and at least for now, the SEC is demonstrating why it shouldn’t come close to controlling what is sensibly called the next Internet.
The SEC’s claim is based on alleged bad things done by Ripple. The SEC reports that Ripple executives have sold an unregistered cryptocurrency called XRP to get rich and fund the development of their blockchain-like platform that makes cross-border payments. The Securities and Exchange Commission says the XRP sales were no different from the sales of the stock or bond company and were illegal as they were not registered with the commission.
Ripple counters this by preventing the SEC from promoting its bit of double standards here. Selling XRP was legal because XRP is not that different from other unregistered cryptocurrencies, such as the industry heavyweights Ethereum and Bitcoin. If the creators of the first blockchain didn’t need to register their bitcoin sales, why bother with Ripple?
The Securities and Exchange Commission, like everyone else in Washington, has little understanding of how cryptocurrencies are changing the economy. This is where things get pointless on the SEC’s side. The commission now claims that whatever its former employee Hinman said earlier about Bitcoin and Ethereum, his speech means nothing. This is just his opinion, nothing more. In court, the SEC told the cryptocurrency world that it had not actually made a formal decision whether Bitcoin or Ethereum was in compliance with securities laws.
Analysts summed up the rhetorical questions that determine the possible further actions of the SEC:
So the words of a high-ranking official, verified by then-chairman of the Securities and Exchange Commission, Jay Clayton, do not reflect the policy of the commission? Does this mean SEC Chairman Gary Gensler is going to hunt down the elusive Satoshi Nakamoto, the creator of Bitcoin, to do with Bitcoin what he does with Ripple?
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