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SEC and Ethereum’s monopoly debate raises eyebrows

SEC

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TL;DR

  • Mr. Huber criticizes Ethereum’s stance on monopolies and highlights SEC favoritism while pointing to DTCC’s monopoly.
  • Ripple calls out SEC’s inconsistent crypto regulation, citing vague classifications and potential bias.
  • Mr. Huber accuses Ethereum’s co-founder of endorsing fraud within the community.

Renowned investigator Mr. Huber recently took to Twitter to criticize Ethereum‘s position on the concept of a monopoly in light of the Securities and Exchange Commission’s (SEC) alleged preferences. The accusations center around the SEC’s purported bias and the contrast in Ethereum’s stance on monopolies.

Ethereum’s rebuttal and DTCC’s monopoly

In response to the SEC’s alleged favoritism, Ethereum has refuted claims that the regulatory body could be attempting to establish a monopoly within the network. Mr. Huber highlighted this contradiction, pointing to Ethereum’s dismissal of the SEC’s influence while simultaneously emphasizing the monopoly held by the Depository Trust and Clearing Corporation (DTCC) in post-trade financial services.

A tweet from Mr. Huber expressed his incredulity, stating that Ethereum proponents previously insisted it was “completely absurd” to suggest the SEC could create a monopoly. However, when Mr. Huber attempted to establish a new clearing network in the U.S., he claimed the same individuals argued against it, citing the DTCC’s existing monopoly.

Ripple’s critique of SEC’s inconsistent approach

Mr. Huber also shed light on Ripple’s criticism of the SEC’s inconsistent approach to cryptocurrency regulation. Ripple, in its court filing, highlighted the SEC’s initial assertion that the legal dispute involved a straightforward application of a well-settled legal test. However, Ripple argues that the SEC’s lack of consistency stems from vague classifications of digital assets, leading to confusion and potential bias in their enforcement of regulations.

The disparity in applying the Howey test, a crucial measure in determining whether a transaction qualifies as an investment contract and hence a security, has become a focal point of criticism against the SEC. Mr. Huber cited Ripple’s discontent with the regulator’s failure to address Ethereum’s alleged improprieties and suggested a potential bias in their actions.

Mr. Huber extended his criticism to Ethereum’s co-founder Joseph Lubin, accusing him of encouraging fraudulent activities. In a tweet, Mr. Huber shared an audio clip, mistakenly tagging Vitalik Buterin instead of Lubin, as evidence of Lubin allegedly endorsing the creation of “multiple pseudonymous identities” within the Ethereum community. This, according to Huber, was purportedly aimed at alleviating public concerns.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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