XRP Lawyer Challenges SEC’s Cryptocurrency Classification: Ethereum vs. Solana and Cardano
The post XRP Lawyer Challenges SEC’s Cryptocurrency Classification: Ethereum vs. Solana and Cardano appeared first on Coinpedia Fintech News
Meta Law Man, a popular XRP lawyer, complained about the SEC classifying cryptocurrencies, particularly after the recent Ethereum (ETH) declaration as a commodity. The development of the occurrence makes it problematic for the SEC on other cryptocurrencies, such as Solana (SOL) and Cardano (ADA), which the regulator defines as security.
SEC’s Inconsistent Classification
Meta Law Man then called out the SEC for having said in court that cryptocurrencies functioning within an “ecosystem” are, in fact, securities.
Then he questioned how Ethereum, with such a huge ecosystem, can be considered a commodity while others are not. Based on the ecosystem argument, he brought this out into the open with the SEC’s ongoing lawsuit against Coinbase.
Coinbase’s Legal Strategy
Coinbase will likely file a Reply Brief and may request a rehearing on its motion to dismiss based upon the SEC’s concession that Ethereum is a commodity. This has huge implications for the regulatory landscape and other crypto-related cases. Meta Law Man emphasized that the SEC will find it difficult to explain why other tokens, like SOL and ADA, can be securities while ETH is not.
Lawyer Marc said that the SEC would likely counter that there were specific undisclosed reasons for classifying Ethereum as a commodity. He noted that the confidentiality of the investigation could protect those reasons. However, Meta Law Man insisted that the SEC’s reasoning must be exposed, given the similarities between ETH and other tokens.
Larger Implications
Many have been highlighting the need for regulatory clarity regarding the Ethereum issue. This is important not only for ongoing legal battles but also for future regulatory decisions. That makes it an event whose verdict or result will be under close scrutiny from the crypto community, with possible important precedents.
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