Gene Hoffmann, behind Chia, one of the popular altcoin projects, made statements about the lawsuit between Ripple and the US Securities and Exchange Commission (SEC). Here are the details…
Altcoin executive comments on XRP being a security
In a Twitter thread, Chia Network president Gene Hoffman expressed confidence that Ripple will lose in the ongoing legal battle against the US Securities and Exchange Commission (SEC). This sentiment came as a Twitter user sarcastically told Hoffman his thoughts on Chia’s superiority over Bitcoin, in response to Securities and Exchange Commission Chairman Gary Gensler’s implying that all cryptocurrencies other than Bitcoin, the largest cryptocurrency, are securities. shared after asking.
No, the SEC is saying that when Ripple sold XRP without a registration statement that was either an investment contract or a securities scheme – both clearly covered by the ‘33 and ‘34 Act. I wouldn’t be surprised if they prevail that after that sin, 2ndry sales remain securities
— Gene Hoffman hoffmang.xch 🌱 (@hoffmang) February 27, 2023
Hoffman responded by stating that Chia’s token, XCH, is not a security and that the company plans to register a stake in Chia. Unlike others who choose not to, he believes this is the obvious way to be legal. However, Matt Hamilton, Ripple’s former director of developer relations, pointed out that the stock registration did not prevent the SEC from going after Ripple. Hoffman responded to Hamilton by stating that Ripple made a mistake by selling XRP before registering the Ripple stake. He added that if you do not sell the token, it cannot be considered a security. He also revealed that the Chia company owns XCH but has never sold tokens.
How does the SEC and Ripple lawsuit affect the regulatory environment?
Ripple’s former top developer warned Hoffman to follow the Ripple case closely, as the SEC tries to argue that secondary market sales may also be securities. However, Hoffman noted that the facts are different and their methods are specifically designed to avoid falling into Ripple’s mistake. The Chia chairman says he has not had any discussions with the SEC about the token’s regulatory status, but believes it is not a security.
Hoffman’s words show Chia is confident in its legal compliance and is optimistic about the outcome of Ripple’s ongoing legal battle with the SEC. However, the SEC’s stance on securities regulation in the crypto space is not entirely clear, and it is not yet clear how its ongoing lawsuits will affect the industry’s regulatory environment.
