• A recent arrest of a cryptocurrency trader has caused the US Department of Justice to label two cryptocurrencies involved in the case as commodities.
• This is potentially favorable for Ripple, who is currently facing a case against the SEC regarding the classification of XRP as a security.
• If Ripple’s lawyers make a case citing the DOJ’s statement, it could lead to a victory for Ripple in their SEC case.
The US Department of Justice has made a groundbreaking decision that could pave the way for Ripple Labs to win their case against the SEC. On 27th December 2022, Avraham Eisenberg, a cryptocurrency trader, was arrested for attacking the Mango Markets exchange and causing it to lose a staggering $110 million. The US Department of Justice lawyers have labeled the two cryptocurrencies involved in the exploitation, MNGO and CRV, as commodities.
This classification of the two assets as commodities could be beneficial for Ripple. In their case against the SEC, which refers to the XRP as a security, citing the DOJ’s statement could hold weight for Ripple and could lead to a victory for them. If Ripple’s lawyers can make a case citing the DOJ’s statement, it could be the difference between them winning or losing the SEC case.
The decision made by the US Department of Justice could have major implications for the future of cryptocurrency and the way digital assets are classified and regulated. It could be a game-changer for Ripple, and their case against the SEC could be their best chance to set a precedent for how digital assets are classified in the future.
It remains to be seen what the outcome of Ripple’s case against the SEC will be, and whether or not the DOJ’s statements will be taken into consideration. Nevertheless, this is a major milestone for Ripple, and it could potentially be the difference between them winning or losing their case against the SEC.