Solana
XRP Lawyer Challenges SEC Cryptocurrency Classification: Ethereum vs. Solana and Cardano
Meta Law Man, a popular XRP advocate, has complained about the SEC classifying cryptocurrencies, especially after the recent declaration of Ethereum (ETH) as a commodity. The development of the event makes the SEC problematic on other cryptocurrencies, such as Solana (SOL) and Cardano (ADA), which the regulator defines as security.
Inconsistent SEC classification
Meta Law Man then called out the SEC for stating in court that cryptocurrencies operate within a “ecosystem» are, in fact, titles.
He then questioned how Ethereum, with such a large ecosystem, could be considered a commodity while others were not. Based on the ecosystem argument, he has brought this into the open with the ongoing SEC lawsuit against Coinbase.
Coinbase’s legal strategy
Coinbase will likely file a response brief and may request a rehearing of its motion to dismiss based on the SEC’s concession that Ethereum is a commodity. This has huge implications for the regulatory landscape and other crypto-related cases. Meta Law Man pointed out that the SEC will have a hard time explaining why other tokens, like SOL and ADA, can be securities while ETH is not.
Lawyer Marc stated that SECOND would likely counter that there were specific undisclosed reasons for classifying Ethereum as a commodity. He stressed that the confidentiality of the investigation could protect these reasons. However, Meta Law Man insisted that the SEC’s reasoning needed to be exposed, given the similarities between ETH and other tokens.
Bigger Implications
Many have highlighted the need for regulatory clarity regarding the Ethereum issue. This is important not only for ongoing legal battles, but also for future regulatory decisions. This makes it an event whose verdict or outcome will be closely watched by the crypto community, with possible significant precedents.