Several cryptocurrency professionals have offered their opinions on the dispute between Ripple and the Securities and Exchange Commission during the past two years (SEC). While the majority of the cryptocurrency community backs the top blockchain firm, certain key players, like Ethereum co-founder Vitalik Buterin and Microstrategy CEO Saylor, have resisted supporting Ripple.
XRP is an unregistered security, according to MicroStrategy co-founder Michael Saylor, who spoke about the lawsuit known as “the cryptocurrency trial of the century” in a recent PBD podcast.
Saylor claims that the bulk of XRP coins are held in escrow by Ripple and are sold to the general public. He continued by saying that as the company had not gone public, Ripple did not reveal information about its XRP holdings.
“Ripple [XRP] is an unregistered security. It’s pretty obvious. The company owns a bunch of it, and they sell it to the general public, but they never took the company public. There are no disclosures,” Saylor said.
Saylor: Both XRP and ETH Are Unregistered Securities
Since a small number of people control both digital assets, Saylor views XRP as an unregistered security similar to the native coin of Ethereum, ether (ETH).
PBD host Patrick Bet-David questioned Saylor on his assertion that both ETH and XRP are securities and why the SEC decided to focus on Ripple rather than Ethereum.
“… I’m not a ripple guy, but if both of them are unregistered, why Target Ripple and not Target Ethereum???”
Saylor asserted that shutting down Ethereum and Ripple would be the SEC’s best course of action, calling them “unethical.” Saylor was quoted as saying
XRP and ETH are stock tokens that Ripple and Ethereum utilized to avoid going public, according to the former CEO of MicroStrategy, who was charged with tax evasion in August. He pointed out that both firms sold fraudulent securities through their American offerings.
The Ethereum 2.0 staking contract was used by Saylor as an example of an investment contract. According to the co-founder of MicroStrategy, approximately $20 billion worth of ETH has been locked in the staking contract by investors, and there is a chance that they won’t receive their funds refunded.
According to data from the cryptocurrency analytics platform Dune Analysis, investors have deposited 15,540,823 ETH ($19.58B) to the ETH 2.0 staking contract.
“If a bank took $20B of your assets, froze the window, and said you can’t have your money back ever. Maybe in 2024, but we’re not sure. We may give you interest in it. We may take it all. We may slash it. That’s the definition of security, right? It’s an investment of money in a common enterprise, you know, relying upon the efforts of others with an expectation of profit,” he said.
According to Saylor, a cryptocurrency asset does not need to depend on a company’s engineers or the CEO to be a commodity.
“The fact is, Ripple got a company, and Ethereum’s got a company [named] the Ethereum Foundation. [These companies] have engineers you’re waiting on them to write the code to give you your money back, and then you’re also waiting to find out what the monetary policy will be. They changed it half a dozen times in the last six years. It’s always changing to you,” he added.
As a well-known Bitcoin maxi, Saylor has consistently referred to the top asset class as a moral currency that may compensate investors who have been defrauded by inflation.