Ripple May Win Over SEC, Thanks to Latest Crypto Comments from US DOJ ⋆ ZyCrypto

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As the SEC vs. Ripple case drags into the new year, XRP proponents are on the lookout for any advantage Ripple may have over the SEC in the hopes that it could bolster Ripple’s chances of winning the affair.

Is Ripple ahead of the SEC in the ongoing case?

Fortunately, XRP supporters can check out recent statements from the US Department of Justice, which classifies two cryptocurrency tokens as commodities. The statements have boosted optimism among community members, who view the statement as a valid point of reference for Ripple’s attorneys in the ongoing case.

The classification of two cryptocurrencies, namely CRV and MNGO, as commodities by the US DOJ can be seen in a recent court filing against Avraham Eisenberg.

Avraham Eisenberg, who was allegedly involved in the hack of decentralized exchange Mango Markets, was recently charged with market manipulation after being arrested on Dec. 28 in Puerto Rico.

The documents filed against Eisenberg, who allegedly took away more than $50 million from the hack, were filed in the same court where the SEC case against Ripple is currently unfolding.

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In the filing, the DoJ refers to CRV and MNGO as products in different paragraphs. This has sparked positive sentiments among Ripple supporters who speculate that if the DoJ can classify these other crypto assets as commodities, Ripple’s XRP could also be classified as a commodity, not a security.

However, some notable figures in the cryptocurrency industry have debunked these claims, pointing out the difference in the DOJ’s situation.

One such figure was Delphi Labs General Counsel Gabriel Shapiro. Shapiro explained that the label on the two cryptos is not bullish for XRP or cryptocurrencies in general.

The fact that the case does not characterize the affected tokens as securities is by no means bullish/positive and is simply a result of litigation strategy – the less predicate issues the government has to litigate in its case, the better c ‘is. Moreover, swaps are just as big if not a bigger regulatory quagmire than securities. He wrote in a tweet.

Similarly, popular attorney John E Deaton pushed back against these takes, saying prosecutors’ choice of language carries no weight as a defense tool for Ripple.

Per his tweet below;

NOT TRUE. Prosecutors simply call the tokens commodities for their own prosecution reasons. Whether the underlying asset is a commodity or a security is not important – the fraud is. Calling it a security creates an unnecessary burden of proof.

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