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Ripple CTO compares Ethereum and SEC to China and Bitcoin

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Gamza Khanzadaev

David Schwartz, CTO of Ripple, compared the SEC’s handling of Ethereum to China’s previous approach to Bitcoin

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Ripple Chief Technology Officer David Schwartz drew a comparison between the SEC’s handling of Ethereum and China’s previous handling of Bitcoin. This comes after Consensys, the developer behind the MetaMask wallet, indicated that the SEC will likely close its investigation into Ethereum.

Neil Hartner, a software engineer at Ripple Payments, added a touch of skepticism, suggesting that closing the investigation may be more about public relations than regulatory clarity.

In response, Schwartz drew a parallel between the SEC’s actions and China’s past behavior towards Bitcoin. He noted that China used to alternately ban and unfreeze Bitcoin, a tactic widely believed to be aimed at manipulating the market to the advantage of Chinese oligarchs.

Making this comparison, Schwartz suggested that the SEC’s inconsistent regulatory approach could be seen as similarly manipulative, favoring certain players in the cryptocurrency market.

XRP vs ETH

Inside the XRP community, this development has sparked a discussion, especially among those who believe that Ethereum has received preferential treatment. Ripple Legal Director Stuart Alderoty raised questions about whether this indicates that Ethereum transactions are not considered securities and what this means for MetaMask and Ethereum staking.

As the debate continues, the cryptocurrency community is calling for clearer and more consistent regulations. Schwartz’s comments highlight the need for a transparent and predictable regulatory framework in the rapidly evolving cryptocurrency market.

About the author

Gamza Khanzadaev

Financial analyst, trader and cryptocurrency enthusiast.

Gamza graduated in Finance and Credit with a specialization in securities and financial derivatives. He then obtained a master’s degree in banking and asset management.

He wants to help cover economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.

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