Ripple CTO Adds Tesla Twist to SEC Debate and Ignites Crypto Community Conversation

• Elon Musk repeatedly claimed that Teslas’ prices would go up after purchase, but the opposite happened. The SEC did not take any issue with the claim.
• The SEC is continuing to pursue Ripple over securities fraud, despite the fact that these allegations are minor. Schwartz, CTO of Ripple, questions why Musk doesn’t receive the same attention.

Elon Musk never hesitates to express his opinion. Sometimes it’s well received, but other times, he is caught unawares. David Schwartz, Ripple’s CTO, recently referred to Musk’s bold statements and asked why the SEC had not acted on it. Yet, their pursuit of Ripple is in high gear for securities fraud.

Musk predicted that Tesla vehicles would appreciate in value in 2019. This would be a rare occurrence, as cars are assets that depreciate. Musk claims that Teslas become more valuable over time as a result of the software updates. He made this claim during the company earnings call in December. His boldest claim was that the ‘self-driving’ software that powers Tesla would be worth $100,000 on its own.

In fact, the reverse has occurred. As competition from traditional carmakers increases, Tesla’s prices for new and used vehicles have continued to drop. CNN pointed Schwartz was quick in his response to ask why the SEC hadn’t taken any action against Musk, despite its trigger-happy attitude towards Ripple and cryptocurrency firms in general.

The SEC should explain why Tesla does not sell unregistered stocks.https://t.co/DVGkhFFt7v

— David “JoelKatz” Schwartz (@JoelKatz) March 3, 2024

The XRP Community on X jumped right in to support Schwartz’s claims and rip into the SEC. XRP Crypto Wolf has more than 320,000 followers and is a well-known influencer.

SEC vs Ripple Grinds on

Schwartz didn’t suggest Musk should face charges for securities fraud. Musk is, in fact, a key ally of crypto, as CNF reported recently reported. However, the Ripple CTO’s thinly veiled criticism points out the folly of the SEC’s approach in which it continues to apply the law selectively—the agency continues to crack down on companies where it deems its chances of a victory relatively high and ignores instances when a heavyweight brazenly violates federal laws.

The SEC is usually successful in its pursuit of targets, as half would prefer to settle out of court and resume normal operations, whereas the other half does not have the financial resources necessary to battle the SEC over months, or even years, such as the Ripple lawsuit.

Ripple was a fierce opponent who wasn’t going to give up easily. Ripple has come out swinging and has been wiping the floor with Gary Gensler’s agency, except for a few instances when the court has ruled in favor of the regulator—such as when it ordered Ripple to turn over financial Documents relating XRP sales.

While XRP is trading at $0.6246 and has gained 10.81% over the last week.