Ripple Demands Knowing Why ETH Isn’t A Security: XRP Defense

Ripple demands knowing why ETH is not considered security while trying to defend itself and filed a Freedom of Information Act request with the SEC that targets documents for ETH and its co-founders as we are reading more in our Ripple news below.

Ripple’s case before the US SEC is going to have quite the effects on the entire industry. Ripple Labs filed its response to the SEC complaint and argued that XRP is not a security and therefore is not in the SEC’s jurisdiction. Ripple is prepared to drag the rest of the industry and try to make a case as one XRP representative said:

“The SEC has clearly picked two winners and ignored a growing and robust industry that is much larger than Bitcoin and Ether. In addition to discovery we will seek directly in the lawsuit, we filed a Freedom of Information Act (FOIA) request for more information about how the SEC determined the status of Ether as a non-security.”

Ripple demands knowing Ether’s status while an SEC representative repeated that while its presale could have been a security offering at that time, ETH is decentralized and qualified as a commodity so trading the coin in the US is under the jurisdiction of the Commodity Futures Trading Commission. The FOIA request asks for:

“All communications with the Ethereum Foundation and/or other relevant companies (including, but not limited to, ConsenSys) or individuals in the ether ecosystem (including but not limited to, Vitalik Buterin, Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Amir Chetrit, Joseph Lubin, Gavin Wood and Jeffrey Wilcke), or any attorneys or other individuals representing the Ethereum Foundation or other relevant companies or individuals in the ether ecosystem, and all documents, including internal communications, analyses, and other materials, that were prepared or relied upon by Director Hinman, or any other current or former Division Director, Staff, or Commissioner in reaching the determination that ether is not a security, including drafts of Director Hinman’s statements regarding ether and analyses prepared by SEC staff.”

The Ether presale happened years before the SEC issued a DAO report so as a response to the meltdown of ETH investment into DAO, the reports show that the SEC declared some cryptocurrencies are securities. Bitcoin on the other hand never had a presale and that’s why it never comes up in these conversations. However, the SEC hasn’t pursued Ether ever while Ripple claimed that BTC and ETH are both controlled by China-based mining pools which pose a threat to the US regulators.