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Not XRP, But Regulators Are Now After ETH- Ripple Lawyer

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John E. Deaton, an attorney, and XRP advocate claimed on Twitter that regulators have shifted their strategy and are now targeting Ethereum.

To justify his claims, Deaton cited the NYAG/KuCoin lawsuit where the former had accused the exchange of selling ETH as unregistered securities.

The founder of the CryptoLaw firm noted that NYAG’s decision to select ETH over XRP, despite the currency being listed on the exchange, for unclear reasons, was not accidental.

“They chose ETH and staking. It’s about going after ALL staking”, he retorted.

It is a coordinated long gameplay to get a default judgment and a potential ruling w/ language that KuCoin was selling ETH as an unregistered security. Why has the investigator purchased ETH specifically when there were hundreds of other tokens to choose from?

On 9 March, New York State Attorney General Letitia James filed suit against KuCoin alleging the Seychelles-based crypto exchange is violating securities laws by offering tokens – including ether – that meet the definition of security without registering with the attorney general’s office.

KuCoin did not respond to subpoenas filed by the NYAG’s office served via email and in person.

With her lawsuit, Attorney General James is seeking a court order to stop KuCoin from representing itself as an exchange, and prevent the company from operating in New York.

As a result, Deaton led a class action of over 1000 ETH holders against NYAG, TronWeekly reported.

In the class action complaint, the XRP proponent argued that Ethereum is not a security and has more than 1,000 supporters, 57 of whom are from New York.

XRP Lawyer Hinting Ripple/SEC Lawsuit To Drag On

Recently, Deaton and former SEC advisor J.W. Verret held a long discussion on topics like his latest class action suit against NYAG’s claim that Ethereum [ETH] is security.

He along with Verret also spoke on Ripple’s pursuing the case with the SEC to the Supreme court.

As per the XRP representative, until Congress establishes a legal framework for the cryptocurrency business, the Ripple case, which has been pending in the district court for some time, could make it to the U.S. Supreme Court.

While the case would first need to go to the circuit court of appeal before it can be taken to the Supreme Court, Deaton’s view highlights the potential for the case to drag on for some time.

Stablecoin issuer Tether releases breakdown of its reserves

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The stablecoin issuer Tether released a report consisting of a breakdown of its reserves as of 31st of March 2021. This is the first of its kind since Tether’s launch in July 2014.

The pie chart below shows that the company held approximately 76% of its reserves in cash and cash equivalents and other short-term deposits and commercial paper.

Tether
Stablecoin issuer Tether releases breakdown of its reserves 2

With a share of 65.39%, commercial paper formed the major chunk of the stablecoin giant’s cash and cash equivalents cohort. Fiduciary deposits, on the other hand, accounted for 24.20% of the same category, while cash, reverse repo notes, treasury bills comprised 3.87%, 3.60%, and2.94% respectively.

The remainder of the platform’s reserves were split up across three groups. For instance, secured loans [none to affiliated entities] formed 12.55% of the total reserves while corporate bonds, funds, and precious metals collectively represented 10%. Moreover, other investments, including digital tokens, constituted 1.64%.

Reason Behind Tether’s First-ever Reserve Composition Release

The latest report essentially underscores the company’s efforts to remain in compliance with a settlement with the New York Attorney General [NYAG] whose probe ended in March. Tether and its sister company/cryptocurrency exchange Bitfinex had to pay an $18.5 million fine in addition to agreeing on the release of quarterly breakdowns of its reserves. In line with this, Tether stated,

“Today’s publication reflects our continued dedication to making this information public as part of our ongoing commitment to transparency and setting the standard in our industry. We embrace that commitment to our community.”

Earlier this month, its stablecoin [USDT] on-chain’s volume had climbed to a new milestone of a whopping $1 trillion for the first time ever. Despite several controversies and the emergence of several stablecoins over the past few years, Tether continued to dominate the realm. At the time of writing controls well over 60% of the market share of the total stablecoin transaction volume.