Not XRP, But Regulators Are Now After ETH

John E. Deaton, an attorney, and XRP advocate claimed on Twitter that regulators have shifted their strategy and are now targeting Ethereum.

To justify his claims, Deaton cited the NYAG/KuCoin lawsuit where the former had accused the exchange of selling ETH as unregistered securities.

The founder of the CryptoLaw firm noted that NYAG’s decision to select ETH over XRP, despite the currency being listed on the exchange, for unclear reasons, was not accidental.

“They chose ETH and staking. It’s about going after ALL staking”, he retorted.

It is a coordinated long gameplay to get a default judgment and a potential ruling w/ language that KuCoin was selling ETH as an unregistered security. Why has the investigator purchased ETH specifically when there were hundreds of other tokens to choose from?

On 9 March, New York State Attorney General Letitia James filed suit against KuCoin alleging the Seychelles-based crypto exchange is violating securities laws by offering tokens – including ether – that meet the definition of security without registering with the attorney general’s office.

KuCoin did not respond to subpoenas filed by the NYAG’s office served via email and in person.

With her lawsuit, Attorney General James is seeking a court order to stop KuCoin from representing itself as an exchange, and prevent the company from operating in New York.

As a result, Deaton led a class action of over 1000 ETH holders against NYAG, TronWeekly reported.

In the class action complaint, the XRP proponent argued that Ethereum is not a security and has more than 1,000 supporters, 57 of whom are from New York.

XRP Lawyer Hinting Ripple/SEC Lawsuit To Drag On

Recently, Deaton and former SEC advisor J.W. Verret held a long discussion on topics like his latest class action suit against NYAG’s claim that Ethereum [ETH] is security.

He along with Verret also spoke on Ripple’s pursuing the case with the SEC to the Supreme court.

As per the XRP representative, until Congress establishes a legal framework for the cryptocurrency business, the Ripple case, which has been pending in the district court for some time, could make it to the U.S. Supreme Court.

While the case would first need to go to the circuit court of appeal before it can be taken to the Supreme Court, Deaton’s view highlights the potential for the case to drag on for some time.