Amid the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple is not doing well due to the tension between the two sides, the agency has received support from a co-founder of Ethereum and the founder of ConsenSys, a full-stack, global blockchain company, Joseph Lubin. You should understand that any current support is important to both parties.
Ethereum’s Joe Lubin defends SEC amid Ripple lawsuit
In a recent interview with The Information, Lubin stated that SEC Chairman Gary Gensler’s request for more extraordinary powers in regulating cryptocurrencies is justified. Lubin’s backing is significant to the SEC right now, as the SEC is facing a barrage of criticism for its one-sided approach to crypto regulation.
Joseph Lubin
“The SEC may have legit arguments in the cases that are being discussed right now,” he said that the agency has a lot of legit arguments.
While Ripple accuses the agency of stifling innovation in the US, Lubin doesn’t think this is the case:
“I don’t believe the SEC is trying to squelch innovation.”
Ripple is adamant that XRP has been treated unfairly by the SEC, unlike ETH, which has never received regulatory clarity.
Previously, William Hinman, a former top SEC official, said that ETH is not unregistered security, which has become a breeding ground for conspiracy theories about potential interest in the XRP community. Some believe that Hinman appeared in the game solely because of his relationship with Simpson Thacher, a member of the Enterprise Ethereum Alliance.
However, the SEC has made it clear that it has not taken an official position on its regulatory status and that Hinman only expressed his personal views.
During his Sept. 24 interview with Fox Business, Ripple CEO Brad Garlinghouse said that Ripple will be willing to settle with the U.S. Securities and Exchange Commission if there is absolute certainty about XRP.
“To the extent, we can find a constructive path forward with the SEC, we, of course, want to find that. There is no scenario though when we are going to settle unless there is absolute certainty about what is XRP on a go-forward basis.”
Garlinghouse stressed that the XRP Ledger is a decentralized open-source technology that pre-existed the company’s creation, comparing its native cryptocurrency to oil and gold.
Read more:
- Ripple Put 600 Million XRP Back In Escrow And Sent 105 Million Tokens To Its ODL Platforms
- SEC Compelled Ripple To Provide Video & Audio-Taped Recordings Of Meetings Relevant To Disputes In The Lawsuit