- Bill Morgan questions VanEck’s silence during the SEC’s lawsuit against Ripple.
- VanEck advocated for ETF fairness but avoided commenting on XRP classification.
- SEC favoritism claims reignite debate over Ripple and Ethereum treatment.
VanEck, along with Canary Capital and 21 Shares, recently signed a letter to SEC Chair Paul Atkins, calling for a “first-to-file, first-to-approve” approach for crypto exchange-traded fund (ETF) applications. The letter argues that the U.S. Securities and Exchange Commission’s (SEC) current handling of ETF approvals may favor certain firms, which could hinder innovation and fairness in the market. In a statement on social platform X, VanEck stated that “SEC favoritism undermines innovation in the ETF market.”
While the letter has sparked dialogue among stakeholders in the digital asset space, legal expert and XRP supporter Bill Morgan raised concerns over what he sees as inconsistent behavior. Morgan questioned why firms like VanEck did not speak up when the SEC filed a lawsuit against Ripple, classifying XRP as an unregistered security while Ethereum remained unchallenged.
Morgan Points to Inaction During Ripple Lawsuit
In a recent post on X, Bill Morgan directly addressed VanEck’s past inaction, writing, “Don’t recall you complaining about SEC favoritism when Ripple was sued over XRP sales and Ethereum received a free pass.” He mentions the lawsuit that the SEC filed against Ripple in 2020, saying the regulators believed the company sold unregistered security called XRP.
Morgan said that being silent throughout Ripple’s case doesn’t align with the firms’ present efforts to push for regulation reform. He suggests that this inconsistency undermines their recent stance on SEC favoritism. The XRP community has echoed these concerns, pointing to what they consider unequal treatment by the SEC regarding different digital assets.
SEC’s Regulatory Approach Under Continued Scrutiny
In part, the SEC’s decision to classify Ethereum as a non-security was guided by a 2018 speech by William Hinman, who used to work for the SEC. According to Vitalik, since Ethereum operates in a decentralized way, it does not fulfill the standards for a securities offering. Ever since internal documents from the speech became public, many more people have raised questions about the speech’s objectivity and possible conflicts of interest.
Now that the Ripple lawsuit is close to finishing, people are still discussing how the lack of consistency in regulations affects the crypto industry. Morgan’s recent words have attracted additional attention to the SEC’s regulation of different blockchain projects.
