In a recent interview, SEC Chairman Gary Gensler declined to answer a question regarding the confusion regarding the Ripple case. He cited that he was “not allowed to talk about certain cases”. Later, the question led to many questions about XRP and other crypto tokens as security.
SEC chief refuses to respond over XRP and ETH
In an interview with Fox Business today, the SEC chairman literally dodged an incoming question about the difference between Ripple and Ethereum. As it is known, the SEC sued Ripple over allegations that XRP is an “unregistered security”. On the contrary, it gave Ethereum a regulatory green light and ETH was not considered a security.
When this topic was brought up in the said interview, Gensler declined to comment in depth. Interviewed by Liz Claman, “Where do you draw the line to differentiate between a security and a currency?” she asked.
Gary Gensler hesitated to answer this vital question. However, he replied, “it’s important for investors to get basic investor protections against fraud and manipulation.” “We are technology-independent but these platforms are required to register with the SEC and do so within the law,” he added.
Many names in the cryptocurrency community were dissatisfied with these responses. For example, Liz Hoffman, executive at the Wall Street Journal, noted that Gensler casts a shadow on crypto companies.
In addition, Attorney John Deaton described Genlser’s answer to the question as ‘totally absurd’. He stated that “there is no such rule that prevents him from talking about a particular project or token.” Deaton also added that one of the goals of the SEC is to provide information about organizations so that investors can make informed choices about their investments.
ETH and XRP: SEC-biased?
The SEC claims that XRP is a security, not a currency. In contrast, there has been a lot of controversy around the SEC officials’ statement not to count Ethereum as a security.
Ripple CEO Brad Garlinghouse has effectively confirmed that ETH has been greenlit over XRP by the authorities. Bill Hinman, former director of the SEC, gave a speech in June 2018 voicing his views that Ethereum is not a security. This speech was considered a guide for the crypto market. According to a report, the first 60 million ETH was sold at that time to raise funds for the Ethereum Foundation.
However, the SEC declared that ‘Hinman’s speech reflected his own views’. On the other hand, there has been a huge surge in support for XRP in the Ripple case. Investors believe the SEC’s investigation is biased and the laws are not the same for XRP and ETH.