Michael Arrington said this during a podcast with cryptocurrency Influencer Layah Heilpern.
According to Arrington, the SEC is unhappy that Ripple has made XRP trading available to everyone, so the regulator intends to “shut down” the company.
The founder of CrunchFund emphasized that he does not consider XRP a security, unlike the regulator.
“In general, it doesn’t matter what counts as a security and what doesn’t..
It really comes down to who is allowed to trade assets: just rich people or all segments of the population,” Arrington said.
He talked about his investments in Uber, Airbnb and Pinterest. He invested in them early on because he had the means.
However, according to Arrington, there are people much smarter than him, but they are not rich, and therefore large investments are not available to them, laments the entrepreneur.
“The government told them they were too poor and unworthy.. Low-income people can’t get 10,000 times the profit from investing in Uber, Pinterest, Airbnb, and other companies.
The SEC doesn’t think poor people are smart enough to make investment decisions, so the regulator is trying to prevent crypto-assets from trading,” Arrington said.
Arrington went on to conclude that the primary job of regulators is to crack down on fraudsters, and investors should make any financial decisions on their own, regardless of their status.
John Deaton, an attorney who defends XRP owners, supported the idea of eliminating accredited investors to ensure equality.
Lawyer considers it shameful when an 18-year-old rich man can own and trade any asset, while a 40-year-old man who has served twenty years in the military cannot do so.
Cryptocurrency trading, including XRP, is blurring the line between rich and poor, Deaton concluded.
“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 of the current definition of an accredited investor. https://t.co/zlyEgBFbcJ
– John E Deaton (@JohnEDeaton1) May 14, 2023
Ripple CEO Brad Garlinghouse recently argued with prominent venture capitalist Jason Calacanis about whether XRP could be considered a security.
The entrepreneur suggested that Ripple should simply go and register with the SEC.