US authorities regulate cryptocurrencies like Chinese authorities

The regulator’s position has not made it clear: what category does ETH belong to? Towards securities or commodities? Schwartz compared the SEC's investigation into ether to the ban on Bitcoin in China.

The Chinese authorities either banned Bitcoin or lifted the ban, and this tactic was perceived as market manipulation in the interests of Chinese oligarchs. When a ban on cryptocurrency mining was introduced in China in 2021, this led to the departure of miners from the country and a significant drop in the BTC rate. Ripple's CTO suggested the SEC was using similar tactics.

Ripple Labs General Counsel Stuart Alderoty announced on social media X that the SEC's decision on ether raised too many questions.

“Does this mean that offers and sales of Ether by Consensys are not considered securities transactions? Isn't Ether itself considered a security? What is the status of MetaMask and staking? What would SEC Chairman Gary Gensler say if we asked him these questions now?,” Alderothy wrote.

Earlier, David Schwartz suggested that the XRP cryptocurrency issued by Ripple could be used as a global reserve currency, so the coin has a great chance of becoming an alternative to the US dollar.