David Schwartz compared crypto miners in the Ethereum and Bitcoin ecosystems to the shareholders of eBay, which he says also produces BTC and ETH securities.
In a discussion that began around the recent $30,000 CAD limit set by two Ontario crypto exchanges for buying altcoins, except for Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH), Ethereum co-founder Vitalik Buterin launched XRP. that David Schwartz, Ripple’s CTO, was not very kind.

Buterin, in response to the tweet, praised the Ethereum community for opposing rules that favor ETH over other cryptocurrencies. David Hoffman, founder of decentralized media and education platform Bankless, responded to Buterin saying he wouldn’t mind if they capped XRP.

Buterin joined in the attacks on XRP, stating: “They already lost their right to protection when they tried to throw us under a bus as ‘Chinese controlled’.” Buterin’s response caused an uproar among XRP’s Twitter followers, who were later joined by Schwartz. myself.

Buterin cited Ripple’s defense in his ongoing legal battle with the US Securities and Exchange Commission in which he argued that XRP should not be considered a security since Ethereum and Bitcoin (BTC) are of a similar nature, and he even named the two main cryptocurrencies. under Chinese control. Ripple is currently pursuing a lawsuit from the SEC over an alleged unlicensed sale and issuance of XRP tokens.

Echoing previous Ripple claims that ETH and BTC are securities, Schwartz compared the miners in the ecosystem to eBay shareholders. He said:

“I think it’s perfectly fair to compare miners in PoW schemes to company shareholders. Just as eBay shareholders make money from residual friction between buyers and sellers that eBay does not address, so do ETH and BTC miners.”
Schwartz ended his tweet by asking Buterin who should decide security disputes: the government or the market.

Ethereum’s potential status as a security has become a hot topic during the ongoing legal battle as Ripple claims the SEC has a clear bias against them and backs Ethereum. In a 2021 interview, Ripple CEO Brad Garlinghouse stated that the SEC helped ETH overtake XRP as the #2 cryptocurrency.

See also: Alchemy and Infura block access to Tornado Cash, and Vitalik Buterin joins the debate

The question of whether cryptocurrencies are securities has long been debated due to the lack of regulatory guidance. Bitcoin is considered an asset by most regulators around the world, while there is still an ongoing debate about the status of ETH due to its pre-mining and initial coin offering.

Source: CoinTelegraph