Michael Arrington, the founder of TechCrunch and CrunchBase, has dropped his thoughts on the ongoing Ripple-SEC lawsuit which has lingered for more than two years.
According to him, the SEC is trying to cripple Ripple because the agency is uncomfortable with how the crypto solutions company made XRP trading accessible to everyone regardless of wealth status. “What I believe is, the SEC wants Ripple dead to put a feather on their cap,” the online Newspaper founder said during one of The Layah Heilpern’s entrepreneurship podcasts.
Read Also: Former U.S. Treasurer Praises XRP, Says Bitcoin, Ethereum, Other Cryptos Are Speculative
In addition, Arrington remarked that he does not think XRP is a security as claimed by the U.S. securities watchdog. Going further, he submitted that it’s irrelevant for the SEC to debate whether or not a crypto asset is a security, implying that everyone should be allowed equal access to trade XRP or make financial investments regardless of wealth status.
In his words, “What’s a security, what isn’t a security is totally irrelevant, and it really just comes down to whether you only allow rich people to trade an asset or you allow everybody to trade an asset. The SEC comes in and says, we don’t think poor people are smart enough to make decisions the rich people are, so we’re going to stop them from doing that. That’s evil.”
Great response from @arrington when ask what he thinks the SEC wants in suing @ripple on @LayahHeilpern January 21, 2021 (Pre-ETHGATE) pic.twitter.com/EMg8ouiBfg
— Digital Asset Investor (@digitalassetbuy) May 14, 2023
Reacting to Arrington’s remarks, John Deaton asserted that the idea of accredited investors should be abolished as it excludes the low-income class from making investments.
“One of the most important issues in my lifetime is the abolishment of the current definition of an accredited investor,” the pro-XRP lawyer said, citing TechCrunch founder’s statement: Are you only going to allow rich people to trade an asset or everyone to trade an asset?
Read Also: Credible Crypto: XRP Is Destined To Reach Somewhere Between $20 and $30 in This Bull Cycle
Notably, the SEC defines an accredited investor as an individual allowed to invest in securities not registered with the agency. More so, an accredited investor must have earned $200K (or $300K with a spouse) in the past two years.
It’s a f’ing shame that an 18 year old born into wealth can own/trade an asset that a 40 year old who has served 20 years in the military can’t.
— John E Deaton (@JohnEDeaton1) May 14, 2023
Conclusively, the prominent entrepreneur said the securities watchdog should channel their energy into curbing the incessant crimes in the crypto industry through proper regulatory moves instead of seeking to achieve regulations by enforcement. Recall that the SEC has launched attacks on several other crypto companies including Coinbase.
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