In a Twitter thread, Gene Hoffman, president of the Chia Network, confidently expressed his belief that Ripple would lose against the U.S. Securities and Exchange Commission (SEC) in their ongoing legal battle.
This sentiment was shared after a Twitter user sarcastically asked Hoffman his thoughts on Chia’s superiority to Bitcoin in response to the Securities and Exchange Commission Chair Gary Gensler hinting all cryptocurrencies apart from the crypto king are securities.
Hoffman responded, stating that Chia’s token, XCH, is not a security and that the company plans to register Chia equity. He believes this is the obvious way to be legal, unlike others who choose not to do so.
However, Matt Hamilton, Ripple’s former director of developer relations, pointed out that registering equity did not stop the SEC from going after Ripple. Hamilton warns that if Chia does not register their equity, the SEC may come after them as well.
Hoffman hit back at Hamilton, stating that Ripple made a mistake by selling XRP before registering Ripple stock. He added that if you don’t sell the token, it can’t be considered a security. He also clarified that the Chia company owns XCH but has never sold any tokens.
All the trading of XCH has been “from farmers farming.” Ripple’s former top developer warned Hoffman to keep a close eye on the Ripple case, as the SEC is trying to argue that secondary market sales can also be securities.
Also Read:
- Bitcoin’s Weekly Drop Linked to Inflation and Rate Hike Concerns in Crypto Markets Analysis
- “IMF Cautions Against Crypto Legal Tender as Bitcoin Drops 3%”
- “Wall Street’s Tuesday Crash Triggers $50B Loss in Crypto Markets: Market Watch”
- QCP Capital Reports Bitcoin Remains Trapped in Bearish Elliott Wave Despite 47% Surge
- “Crypto Hedge Funds: Exploring the Most Influential Firms Investing in Cryptocurrency”