Did Ethereum Purchase a Free Pass From Hinman? Ripple-SEC Lawsuit Takes a Shocking Twist

The ongoing legal clash between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has garnered widespread attention within the global crypto community. Social media platforms have become hotbeds of discussion, particularly regarding the potential implications of former SEC director Bill Hinman’s stance on Ethereum (ETH) in relation to the Ripple case.

Here’s what the latest dialogue was all about.

Ripple Case Mired in Intrigue and Speculation

A blockchain specialist going by the moniker ‘Mr. Huber’ responded to a tweet questioning the relevance of Hinman’s viewpoint on Ethereum to the evidence stacked against Ripple. Mr. Huber outlined two potential scenarios.

• Scenario 1: If Judge Analisa Torres concludes that Hinman legally exempted Ethereum from being classified as a security, then it’s likely that the same logic would be applied to Ripple’s XRP. Intriguingly, Hinman’s Ethereum analysis did not factor in the scale or transparency of the holdings, which could mean XRP was not marketed as security and thus incurs no penalties.
• Scenario 2: The second scenario considers that if Judge Torres deems that Hinman’s exclusion of Ethereum as a security was unlawful, yet a rational individual could have believed that XRP would be governed by similar regulations based on Hinman’s public stance, XRP might have been sold as a security, but without proper notice, leading again to no penalties.

Controversy Surrounding Hinman’s Role

Attorney Bill Morgan has introduced a provocative theory regarding the relationship between Hinman and Ethereum. Morgan suggests that Hinman may have been influenced financially by the Ethereum Foundation or an associated entity, prompting him to adopt a lenient approach towards Ethereum. According to Morgan, this could explain why Ethereum was seemingly given a free pass in the ongoing regulatory scrutiny faced by cryptocurrency.

As speculations continue to swirl, all eyes are now on the Ripple-SEC saga, with crypto-enthusiasts across the globe eager to see how Hinman’s perspective on Ethereum might influence the final verdict for XRP.