This could be the main difference between XRP and Ether
in a Last TweetCharles Gasparino of Fox Business claims that sources within the US Securities and Exchange Commission have told him that the reason why Ether has not been considered a commodity by the regulator is the built-in blockchain infrastructure that has been in operation for years.
Fraction (1/2): Tweet embed The sources say Tweet embed The logic of the agency’s case against @ripple is that the company’s infrastructure is still under construction, so XRP – the token that was used to fund the thing – is considered a security. Tweet embed Infrastructure
– Charles Gasparino (@CGasparino) September 15, 2021
On the other hand, Ripple still relies on XRP to fund its business. This is why the Securities and Exchange Commission claims that cryptocurrency is actually an unregistered security, says Gasparino.
In March 2020, Ripple CEO Brad Garlinghouse told the Financial Times that the company would not make a profit without selling the token.
According to the SEC complaint, Ripple stated in a 2013 promotional document that its business model was based on the success of XRP.
It is expected that Gasparino’s explanation did not satisfy the members of the XRP community, many of whom raised an issue with the word “build-out”. Ethereum is currently transitioning to a Proof of Stake model.
Ripple, as well as the XRP community, are demanding answers about the SEC’s internal deliberations on digital assets.
As reported by U.Today, the dismissal of William Hinman, the former top agency official who claimed Ether was not safe in the infamous 2018 letter, occurred on July 27. During his testimony, Hinman revealed that he had already warned Ripple about XRP and advised the company to halt its sales.
The Securities and Exchange Commission (SEC) distanced itself from Hinman’s speech, with Ether’s security posture remaining in limbo. In August, SEC President Gary Gensler declined to comment on whether the cryptocurrency is an unregistered security.