Wall Street Journal Blasts The SEC for Setting ‘Inconsistent Rulings’ in Ripple Lawsuit
The U.S. Securities and Exchanges Commission (SEC) is causing confusion in the crypto industry with inconsistent rulings and handling of the Ripple lawsuit, a Wall Street Journal editorial piece read on Tuesday.
The WSJ editorial board is blaming the SEC for taking an “inconsistent” approach in dealing with the Ripple lawsuit, which could have adverse effects on crypto regulation. The SEC filed a lawsuit against Ripple and its executives over its alleged $1.3 billion issuance of XRP tokens as unregistered securities.
The WSJ however criticized the handling of the Ripple-SEC case claiming the regulators are “creating danger” for retail crypto users with their approach to the Ripple case. According to the post, the regulator is providing “inconsistencies in dealing with XRP as a security” while giving other cryptocurrencies such as Bitcoin and Ethereum a pass as assets. The WSJ post reads,
“The SEC believes bitcoin and ether aren’t securities, in part because their developers don’t profit from their sale.”
“But those exemptions were announced through statements from former SEC Chairman Jay Clayton in 2019 and 2020, with no formal rule-making.”
Ripple has previously argued that XRP compares to Bitcoin and Ethereum but the SEC has not deemed any of them a security yet. The blockchain company received a greenlight in its case with the SEC when Judge Sarah Netburn granted it access to internal communication on how they determined XRP as a security.
With Bitcoin and Ether deemed to be non-securities, Ripple could be off the hook if the internal communications are not clear on how they determine which cryptos are securities and which ones are not. BTC 0.15% Bitcoin / USD BTCUSD $ 57,405.73
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