As reported by FOX correspondent Charles Gasparino, citing sources of his own, the SEC does not consider Ethereum a security because it has a fully built blockchain infrastructure that has been operating for years.
In this sense, the regulator classifies the market’s second largest cryptocurrency by market capitalization as a commodity, in contrast to Ripple’s coin.
The XRP token is still used to fund Ripple’s business, which is the reason why the SEC considers it an unregistered security, Gasparino says.
Notably, Ripple has turned to the SEC’s stance toward Bitcoin and Ethereum for its defense in the case against the regulator, which accuses the company of selling unregistered securities.
Community members have questioned the SEC’s argument regarding Ethereum, as they claim that the currency is in the midst of a transition to ETH 2.0, so it is not a “fully built” system.