Ethereum could be the SEC’s next target after Ripple and XRP

The U.S Securities and Exchange Commission (SEC) has yet to clarify the regulation of the cryptocurrency industry, but many believe the agency is not going to stop. Accordingly, Fox Business journalist Charles Gasparino thinks that the SEC will target Ethereum next if the case with Ripple is resolved in favor of the regulator.

Ethereum next to be on SEC’s purview if Ripple loses XRP lawsuit

In a recent discussion, he concurs with XRP defender John Deaton, who thinks the SEC will target Ethereum next if the Ripple case is resolved in the regulator’s favor.

And here are some reasons. First, the present and former leadership at the apex regulatory body seem to be well aligned over the status of Ripple’s XRP being security. This follows a recent discussion held by the present SEC chair Gary Gensler and his predecessor Jay Clayton at the Digital Asset Compliance and Market Integrity Summit in New York. They seemed to share tips on how the sector should be regulated.

Secondly, according to him, Bitcoin was not a security, but Ripple/XRP was. Where their opinion deviated from each other was on Ethereum. Gasparino thinks that Gensler is waiting for Ripple’s case to settle before revealing his stance on Ethereum.

“I think he’s waiting for the Ripple case to determine whether to go back to deeming Ethereum, to be honest with you. That’s how crazy it gets,” Gasparino said.

Ethereum has long been on the radar since Ripple was sued by the SEC. And many people keep asking why Ether should get a free pass from the SEC while Ripple was taken to court. Much of the controversy has stemmed from William Hinman, the former director of corporate finance at SEC, whose famous speech declared ETH to no longer be a security.

During litigation, the SEC shied away from arguing that. They argued that it was only Hinman’s own opinion and not the SEC. This is one of the reasons why key players, including attorney John Deaton, have noted that the question of whether Ether is indeed not considered a security by the SEC remains to be answered.

Others argue that if the SEC treats XRP as a security, it will also offer the same treatment for ETH. The main reason is that the commission failed to give a material distinction between the operation of Ether and of XRP that is relevant to the application of the federal securities laws.

This lack of clarity makes Ether a possible SEC target. And everything will happen soon as it begins to approach the plan to become a Proof-of-Stake network.

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