As the SEC vs. Ripple lawsuit continues into 2023, XRP fans are searching for every advantage Ripple may possess over the SEC in the expectation that it would improve Ripple’s prospects of prevailing. Fortunately, XRP enthusiasts may examine recent pronouncements from the US Department of Justice, which characterizes two crypto tokens as “commodities.” The words have inspired hope among crypto communities, who considered them to be a viable point of comparison for Ripple’s attorneys in the current litigation.
Two cryptocurrencies, CRV and MNGO, were classified as commodities by the U.S. Department of Justice in a latest court filing involving Avraham Eisenberg. Avraham Eisenberg, who reportedly participated in breaching the decentralised exchange site Mango Markets, was lately charged with price manipulation after his arrest in Puerto Rico on December 28.
Eisenberg, who reportedly stole more than $50 million through the hack, was charged in the exact court where SEC vs. Ripple is pending. In separate paragraphs of the complaint, the DoJ refers to CRV and MNGO as commodities. Ripple’s XRP might well be classified as a commodity, as opposed to a security, if the Department of Justice classifies these other cryptocurrencies as commodities.
Nevertheless, significant players in the bitcoin business have rejected these accusations, illustrating the contrast between the DOJ’s condition and the cryptocurrency industry’s. Gabriel Shapiro, general counsel of Delphi Labs, was one such character. According to Shapiro, the designation on both cryptocurrencies is not optimistic for XRP or cryptocurrencies in general.
“The reality that the lawsuit does not classify the key crypto tokens as securities is neither bullish nor positive; it is purely a matter of litigation technique. The lesser underlying concerns the government must defend in its case, the better.” In addition, swaps are as large or perhaps larger regulatory quagmires than securities.” He indicated in a tweet.
Similarly, renowned attorney John E. Deaton has refuted similar accusations, stating that the terminology used by prosecutors cannot be used as a defence strategy for Ripple. According to his tweet below: “FALSE. Prosecutors start referring to the crypto tokens as commodities for prosecution purposes. It is irrelevant whether the underlying asset is a commodity or a security; what matters is the deception. Calling it a security increases the burden of proof unnecessarily.”
