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XRP Lawyer Challenges SEC Crypto Classification: Ethereum vs. Solana and Cardano
Meta Law Man, a famous XRP lawyer, has complained about the SEC’s classification of cryptocurrencies, particularly 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 claiming in court that cryptocurrencies work within a “ecosystem” are, in fact, titles.
Then he wondered how Ethereum, with such a vast ecosystem, can be considered a commodity while others are not. Building on the ecosystem argument, he brought it into the open with the SEC’s ongoing lawsuit against Coinbase.
Coinbase’s legal strategy
Coinbase will likely file a Reply Brief and may request a new hearing on 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 cryptocurrency-related cases. Meta Law Man pointed out that the SEC will find it difficult to explain why other tokens, such as SOL and ADA, can be securities while ETH cannot.
Lawyer Marc said that the SEC would likely counter that there were specific undisclosed reasons for classifying Ethereum as a commodity. He noted that the confidentiality of the investigation could protect such reasons. However, Meta Law Man insisted that the SEC’s reasoning should 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 under intense scrutiny by the crypto community, with possible important precedents.