Michael Arrington disclosed that he believes the SEC is not okay with Ripple making XRP trading accessible to everyone regardless of status.
Pro-XRP attorney John Deaton recently reacted to comments made by Michael Arrington on why the US SEC sued Ripple. Arrington, the founder of the online newspaper TechCrunch and venture capital firm CrunchFund, asserted that the SEC was not okay with the fact that Ripple made XRP trading accessible to everyone.
Arrington made these remarks while speaking on a past episode of The Layah Heilpern Show, an entrepreneurship podcast. “What I believe is, the SEC wants Ripple dead to put a feather on their cap,” Arrington emphasized but noted that this comment is based on nothing but pure speculation.
Great response from @arrington when ask what he thinks the SEC wants in suing @ripple on @LayahHeilpern January 21, 2021 (Pre-ETHGATE) pic.twitter.com/EMg8ouiBfg
— Digital Asset Investor (@digitalassetbuy) May 14, 2023
Arrington stressed that he does not believe XRP is a security, as alleged by the SEC. However, he mentioned that he holds the opinion that it does not really matter whether the asset is a security or not.
Speaking further, he said, “What’s a security, what isn’t a security is totally irrelevant, and it really just comes down to whether you only allow rich people to trade an asset or you allow everybody to trade an asset.”
He called attention to his investment decisions in companies such as Uber, Airbnb, and Pinterest. He disclosed that he was able to invest in the early rounds of these firms because he had wealth and a fund. Arrington pointed out that there are people who are just as smart or even smarter than him that cannot make these investments because they are not wealthy.
“The government told them that they’re not worthy, that they’re too poor, and so they can’t make good financial decisions on their own. […] So they don’t get to make 10,000x returns on things like Uber, Pinterest, Airbnb, and other companies,” he remarked.
He continued, “The SEC comes in and says, ‘we don’t think poor people are smart enough to make decisions the rich people are, so we’re going to stop them from doing that.’ That’s evil.”
Arrington concluded by stating that he does not really care whether an asset is a security or not, only that regulators should ensure that they stop fraudulent activities and allow investors, regardless of status, to make any financial decisions they want to make.
According to his definition, every investor should be allowed to invest and trade XRP.
Deaton Reacts
Reacting to Arrington’s comments, Deaton highlighted the issues that come with the concept of an accredited investor. For context, the SEC defines an accredited investor as an individual allowed to invest in securities not registered with the agency.
Deatin highlights TechCrunch founder’s words: “Are you only going to allow rich people to trade an asset…”
“Are you only going to allow rich people to trade an asset or everyone to trade an asset?”
– @arringtonOne of the most important issues in my lifetime is the abolishment the current definition of an accredited investor. https://t.co/zlyEgBFbcJ
— John E Deaton (@JohnEDeaton1) May 14, 2023
Deaton noted that abolishing the current idea of accredited investors is one of the most crucial issues in his lifetime, as the idea introduces a form of exclusivity. An accredited investor, according to the SEC, must have earned $200K (or $300K with a spouse) in the past two years.
“It’s a f’ing shame that an 18-year-old born into wealth can own/trade an asset that a 40-year-old who has served 20 years in the military can’t,” Deaton concluded.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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