In a recent online battle that has captivated the cryptocurrency space, the XRP community engaged in a fiery debate with Max Keiser, advisor to the president of El Salvador and a well-known Bitcoin evangelist. Tensions escalated as both sides argued passionately about the nature of XRP and regulatory status.
The feud began when John E Deaton, Founder of Crypto-Law.us, tweeted that the U.S. Securities and Exchange Commission (SEC) cannot “kill” XRP. He drew parallels to the past when some SEC officials referred to Bitcoin as a security, which he deemed absurd.
Deaton highlighted a video from 2015 featuring Joe Grundfest discussing this matter. While acknowledging that the SEC can cause damage and create fear, he emphasized that a transient regulator like Gary Gensler would eventually step down.
Deaton concluded by stating that XRP should not be considered a security, drawing attention to how Ethereum (ETH) was favored due to regulatory capture by certain investors.
Max Keiser swiftly responded with a tweet. Firstly, he dismissed the significance of the Hinman letter, a document that has been widely debated within the crypto community. According to Keiser, it held no weight and was essentially meaningless.
Keiser further challenged any past chatter about Bitcoin from the SEC between 2013 and 2015, claiming it was irrelevant since Bitcoin had surpassed the SEC’s jurisdiction. He stated that Gensler had also acknowledged this fact.
Implications For XRP & Ethereum
Keiser then dropped a bombshell, suggesting that both Ethereum and XRP would face SEC scrutiny as unregistered securities. He argued that the SEC was working in the interest of the banking cartel and operated as a protectorate for the banks.
Keiser warned that the SEC might employ national security and the Patriot Act to thwart the progress of ETH and XRP, effectively “killing” these projects. He disregarded the argument that “code is not a security,” deeming it a dead-end and proposing a separate discussion on the matter.
However, Keiser contended that Ripple and XRP had knowingly engaged in fraudulent activities to circumvent regulations, which he found to be the crux of the problem.
However, the outcome of this debate may have far-reaching consequences, influencing the future direction of the cryptocurrency market and shaping the regulatory landscape for years to come.
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