With discussions starting around two Ontario cryptocurrency exchanges’ latest 30,000 Canadian-dollar limit on altcoin based transactions, which excluded Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH), Vitalik Buterin, co-founder, Ethereum, made a statement on XRP which wasn’t well received by David Schwartz, CTO, Ripple, as stated by Cointelegraph.
According to Cointelegraph, Buterin, with regard to a tweet, commended Ethereum community’s pushback against regulations which put ETH over other cryptocurrencies. David Hoffman, founder, Bankless, a decentralised media and education platform, in response to Buterin stated about not having any objections on XRP’s restriction. “They already lost their right to protection when they tried to throw us under the bus as ‘China-controlled,’” Buterin said. Buterin’s response resulted in XRP followers taking to Twitter, which was joined by Schwartz.
On the basis of information by Cointelegraph, Buterin referred to Ripple’s defense in its happening battle with United States Securities and Exchange Commission (SEC), in which it was claimed that XRP shouldn’t be deemed as security since Ether and Bitcoin are considered same in characteristics. Currently, Ripple is engaged in a legal battle with SEC over alleged unlicensed sale and issuance of XRP tokens. Schwartz concluded his tweet over a question to Buterin, which asked whether the government or market should settle the security discussion.
Moreover, Cointelegraph reported that Ether’s potential ability as a security mechanism has become a topic of discussion during the ongoing lawsuit proceedings, with claims from Ripple that SEC has biasness against them and prefers Ethereum. In an 2021’s interview, Brad Garlinghouse, CEO, Ripple, contended that the SEC helped ETH overtake XRP as the second cryptocurrency. Whether cryptocurrencies are considered securities has been a long-awaited discussion on the grounds of regulatory guidelines. Maximum global regulators consider Bitcoin as an asset, while there is still a discussion over the status of ETH due to its pre-mine and initial coin offering.
(With insights from Cointelegraph)