Ripple – XRP And Ethereum – ETH Could Benefit From Each Other’s Victory On The Lawsuit With SEC
The enemy of your enemy is a friend. This is especially true in the case of Coinbase, Ripple, and the U.S. Securities and Exchange Commission (SEC). Accordingly, although Ethereum is not mentioned here, it also plays an important role in this case. And if Ripple wins, likely, Ethereum will also benefit.
Why a win for Ripple could also be a victory for Ethereum
The lawsuit is ongoing between the SEC and fintech firm Ripple and its native token, XRP, over the alleged sale of unregistered securities.
Ethereum somehow directly or indirectly plays a role in this triangle. It all started when Ripple filed a Freedom of Information Act request with the SEC over unfair treatment. Arguably, SEC had given preference and regulatory green light to ETH, which enabled it to surpass XRP.
In this regard, in a series of tweets, crypto attorney John Deaton expressed his story about the evolving equation between ETH and XRP.
“Whether we like it or not, ironically, XRP and ETH are on the same side in the SEC case,” he opined. Further, according to him, both XRP and ETH could benefit from each other’s victory. ETH surging could have a positive effect on the altcoins market cap as a whole. Similarly, “…if Ripple wins on fair notice, it guarantees an ETH victory on fair notice. Essential to the fair notice defense is the June 14, 2018, Hinman speech. Ripple’s lawyers have argued that that speech provided Ripple with a reasonable belief that XRP is not a security.”
In June 2018, Hinman said in a keynote that based on his understanding of the Ethereum network and its decentralized structure, Ether offers and sales are not securities transactions. Six months later, in July, a district judge, Sarah Netburn, allowed Ripple to oust the former SEC official who claimed in 2018 that ETH was not a security. XRP considers itself in the same category despite the difference in opinion.
“If Ripple can show the XRPL and ecosystem is equal to or more decentralized than Ethereum, Ripple wins (at least from 2018 to present),” Deaton added.
Additionally, both XRP and ETH have a winning case in favor of their respective tokens. In this context, the founder of Crypto-law.us tweeted:
But ETH has a better case (on fair notice) than XRP related to today’s token.
The truth is that all altcoins start out as a security. In fact, many at the SEC considered #Bitcoin a security between 2010-2015. @HesterPeirce recognized this reality and proposed her Safe Harbor.
— John E Deaton (@JohnEDeaton1) November 15, 2021
Not long ago, he stated that several current and former SEC officials have conflicts of interest. He specifically named former SEC Chairman Jay Clayton and SEC Director of Corporate Finance William Hinman. According to the attorney, Clayton’s previous law firm represented the co-founders of Ethereum. He also alleges that Hinman’s former law firm – Simpson, Thacher & Bartlett – is the Enterprise Ethereum Alliance board member.
Deaton also claimed that Hinman collected $15 million from Simpson, Thacher & Bartlett the same year he worked at the SEC. Furthermore, he mentioned in his tweet,
Who is the enemy?
Some have accused me of making the @Ripple case about #XRP ? #ETH. It’s b/c I wrote the Facts Timeline ? and the #Ether Free Pass Memo.
But the fight is against the SEC. Whether we like it or not, ironically, XRP and ETH are on the same side in the SEC case.— John E Deaton (@JohnEDeaton1) November 15, 2021
Nevertheless, one aspect remains very clear – there is a desperate need for transparent regulations.
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