SEC’s ETH Probe Just like China’s Bitcoin Ban: Ripple CTO

• The SEC’s dropping of an investigation into Ethereum has left many questions.
• Ripple’s authorized chief slammed the company for its regulation technique.
• Ripple CTO in contrast the SEC’s choice to China’s ban/unban on BTC.

The U.S. Securities and Trade Fee’s choice to drop its investigation into Ethereum (ETH) has created confusion throughout the crypto house concerning its method to  regulation.

Whereas the transfer propelled ETH costs above $3,400, it has left business consultants and buyers puzzled on the way forward for crypto regulation in the US.

Stuart Alderoty, the Chief Authorized Officer at Ripple, took to X (previously Twitter) to precise that the SEC choice has raised quite a few questions for the crypto business, including:

“Does this imply the SEC thinks Consensys’ affords and gross sales of ETH aren’t securities transactions and/or that ETH itself just isn’t a safety? What’s going to Gensler say if now requested? What’s the standing of MetaMask and staking?”

In the meantime, Ripple CTO David “JoelKatz” Schwartz responded to his colleague’s X publish, evaluating the SEC’s probe into Ethereum to China’s on-and-off ban on Bitcoin (BTC). The standing of ETH as a safety or a commodity stays unclear, and the SEC’s shifting stances haven’t clarified the state of affairs.

An identical sample was witnessed in China when in 2021, they banned Bitcoin mining, resulting in an exodus of miners and a considerable drop in BTC value. Schwartz remarked, “China used to alternately ban and unban bitcoin simply to control the marketplace for their oligarchs,” suggesting that the SEC is likely to be using related techniques.

The contentious battle between the SEC and Ripple has been a focus throughout the digital asset sector. The fintech agency secured a partial victory in its ongoing combat with the regulator when Decide Analisa Torres confirmed that XRP was not a safety when bought to retail buyers.