Ethereum CEO Vitalik Buterin recently tweeted that Ripple Labs lost their “right to protection” from regulation years ago. The bold statement is about the Securities and Exchange Commission’s lawsuit against Ripple Labs. The SEC filed the case in 2020, alleging the company sold unregistered securities. Furthermore, In Ripple’s defense against the lawsuit, they claimed Ethereum is “highly susceptible to Chinese control,” sparking animosity. Buterin’s latest claim drew backlash from the Ripple community. Here’s everything you need to know about the recent Ethereum vs Ripple controversy.
The SEC’s lawsuit against Ripple Labs
The ongoing lawsuit against Ripple Labs will inevitably become a cornerstone of cryptocurrency regulation. However, the ongoing debate about which government agency should regulate digital assets is still undecided. Moreover, In a recent Wall Street Journal opinion, SEC Chairman Gary Gensler doubled down on crypto as a security. In June, Gensler claimed Bitcoin (BTC) is the only cryptocurrency he’d consider a commodity.
Buterin’s opinion on crypto regulation for Ethereum vs Ripple
The Ethereum CEO is vocally anti-regulation of cryptocurrency. As such, the discourse began with a tweet from Bankless HQ CEO David Hoffman about Canadian crypto regulation. Then, Buterin chimed in to attack the regulations, despite benefiting Ethereum.
“Glad to see Ethereum people pushing against regulations that privilege ETH over other legitimate cryptocurrencies,” Buterin tweeted. However, Ripple’s chief technical officer, David Schwartz, quickly called Buterin out, claiming his opinions don’t add up. Consequently, he noted that Buterin is a firm supporter of decentralization, except for projects that “disagree” with Ethereum’s narrative.
Buterin noted he is against banning proof-of-work (PoW), despite Ethereum’s upcoming switch to proof-of-stake (PoS) with the Merge. Schwartz claimed it’s fair to compare PoW miners to stockholders, specifically for eBay. “Just as eBay’s stockholders earn from the residual friction between buyers and sellers that eBay does not remove, so miners in ETH and BTC,” Schwartz tweeted. Assuming the comparison is true would make ETH just as susceptible to securities regulations as XRP.
What do you think? Is regulation in crypto a good thing? Let us know in the comments below.