As the Ripple (XRP) vs SEC lawsuit continues, the Department of Justice referred to two cryptocurrencies as commodities rather than securities. This sentiment has led to optimism among Ripple supporters, who hope that the case will give an edge to the US-based blockchain company.
Court Filing Referred To Two Cryptocurrencies As Commodities
In a court filing against Avraham Eisenberg, a cryptocurrency trader, the U.S. Department of Justice referred to two cryptocurrencies as commodities. The classification of two cryptocurrencies, namely Curve DAO Token (CRV) and Mango Markets (MNGO). Eisenberg was arrested in Puerto Rico for his role in the Mango Market exploit.
Mango Markets is a decentralized perpetual exchange on Solana and the platform has suffered a loss of $110 million. According to an affidavit, Eisenberg faces one count of commodities fraud and one count of commodities manipulation.
The indictment has drawn support and interest from the crypto community, as the DOJ lawyers do not identify the cryptocurrencies as securities, nor do they identify securities law violations. Thus there is a reasonable assumption that it might have a favorable benefit for Ripple.
Referring To Commodities For Prosecutorial Reasons
On the other hand, Attorney John E Deaton, renowned crypto lawyer and founder of legal and regulatory digital asset news company CryptoLaw, has responded to these claims by stating that prosecutors’ use of certain language is irrelevant in the Ripple case. He stated in a tweet, that prosecutors are simply calling the tokens commodities for their own prosecutorial reasons. He highlighted that the substance of the underlying asset is irrelevant, the fraud is what matters.
Gabriel Shapiro, General Counsel at Delphi Labs, stated that the crypto label as securities is not necessarily positive for Ripple or cryptocurrencies in general. He commented on a tweet it merely arises from a litigation strategy.
Notably, the court in which the SEC vs Ripple case is being held is the same one that was involved with Avraham Eisenberg’s indictment. As of this writing, Ripple’s token XRP is trading at $0.3463, up 0.87% in the past 24 hours.