In a recent podcast session, Michael Saylor, the founder and former CEO of Microstrategy, showed support for the United States Securities and Exchange Commission’s (SEC) standpoint regarding Ripple and XRP.
According to Saylor, Bitcoin (BTC) is the only ethical commodity while all other altcoins including XRP and Ethereum (ETH) are unregistered securities.
Whereas Brad Garlinghouse and the entire Ripple team are hoping for a favorable ruling in their longstanding XRP lawsuit with the SEC, Michael Saylor noted that Ripple should be shut down by the regulators.
The Microstrategy founder, who holds the same views for Ethereum (ETH) stressed that XRP is an unregistered security and not a commodity. He further implied that XRP is not decentralized given that the token has an issuer, which is Ripple, the San Francisco-based cross-border payment firm.
Michael Saylor also noted that Ripple issued XRP tokens to investors as an unregistered security and correspondingly violated the securities law. This goes in line with the SEC’s argument in the court battle with Ripple. However, the crypto solutions company has received support from several third parties and crypto entities like Coinbase, in the XRP lawsuit.
Additionally, he said that both XRP and Ethereum (ETH) are ‘unethical’. In buttressing this point, the Microstrategy founder cited that about $20 billion worth of ETH tokens is currently locked up in the Ethereum staking contract by investors. According to him, many investors may never get their funds back.
“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 stated.
Responding to a question from the PBD Podcast host, Patrick Bet-David about the Ripple-SEC case and why Gary Gensler is only attacking XRP and not ETH, Saylor said;
“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. Just like Ethereum (ETH); it’s an unregistered security. It is controlled by a few people in the Ethereum Foundation and Consensus. Just like FTT, Solana (SOL); they are all unregistered securities.”
“I think the best thing for the world would be if the SEC pretty much shut down all of it [altcoins]. It’s all unethical,” he concluded.