Gene Hoffman, the president of Chia Network, is certain that Ripple will lose its current legal struggle against the Securities and Exchange Commission (SEC).
In a Twitter thread, Gene Hoffman, the president of Chia Network, predicted that Ripple will lose its ongoing legal struggle with the U.S. Securities and Exchange Commission (SEC).
This remark was expressed when a Twitter user questioned Hoffman sarcastically about Chia’s superiority over Bitcoin in response to SEC Chair Gary Gensler’s implication that all cryptocurrencies other than Bitcoin are securities.
Hoffman said that Chia’s token, XCH, is not a security and the business intends to register Chia token. Unlike those who opt not to do so, he feels that this is the most clear method to be lawful.
Nevertheless, Ripple’s former director of developer relations, Matt Hamilton, noted that registering equity does not prevent the SEC from pursuing Ripple.
Hoffman responded to Hamilton by asserting that Ripple committed a fault by selling XRP prior to registering Ripple stock. He stated that the token cannot be considered a security if it is not sold. Moreover, he explained that the Chia firm is the owner of XCH but has never sold any tokens. All XCH transactions have originated “from farmers cultivating.”
Former chief developer of Ripple advised Hoffman to keep a close watch on the Ripple case as the SEC attempts to prove that secondary market transactions are also securities. Nevertheless, Hoffman said that the facts are different and that their system was meant to avoid Ripple’s mistake.
The president of Chia has not discussed the token’s regulatory status with the SEC, but he feels that it is not a security.
Hoffman’s comments suggest he is confident in Chia’s legal compliance and enthusiastic about the result of Ripple’s current legal struggle with the SEC. Nevertheless, the SEC’s position on securities regulation in the crypto field is not totally apparent, and it needs to be seen how their continuing cases will impact the regulatory environment of the business.
Also Read: SEC Chair Reconfirms All Cryptos Are Securities Except Bitcoin, Attorneys Disagree
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