Reason for which SEC does not consider Ethereum to be a security, it is a fully built blockchain infrastructure that has been working for years. This was reported by FOX correspondent Charles Gasparino, citing his own sources.
BREAKING (1/2): @SEC_Enforcement sources tell @FoxBusiness the logic of the agency’s case v @Ripple is that the company’s infrastructure is STILL being built out so XRP — the token which was used to finance the thing — is considered a security. @ethereum infrastructure is
– Charles Gasparino (@CGasparino) September 15, 2021
In this regard, the regulator classifies the second cryptocurrency in terms of capitalization as a commodity, in contrast to the Ripple coin.
The XRP token is still used to fund the fintech company’s business. That is why the SEC considered it an unregistered security, Gasparino claims.
Disclosure in court of the regulator’s arguments regarding the classification of Bitcoin and Ethereum has previously become one of Ripple’s lines of defense during the consideration of the SEC’s claim.
Members of the XRP community in the comments to Gasparino’s tweet were skeptical about the regulator’s position.
They noted that Ethereum is currently in the transition to ETH 2.0, so the definition of “fully built” raises questions.
According to commentators, it can be attributed to the Ripple infrastructure as well, since the XRP Ledger distributed ledger that underlies the token has also been in operation for many years.
RippleNet, which uses XRP as an intermediate currency for payments, is an independent entity, and the fintech firm is one of hundreds of participants, they noted.
In 2020, Ripple CEO Brad Garlinghouse admitted that the firm would not be profitable without the XRP sale.
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