Bitcoin, Dogecoin Aren't Securities But Ethereum, XRP Are: Gene Hoffman
The debate surrounding whether cryptocurrencies are securities has been a persistent and complex issue within the crypto ecosystem. Now, Gene Hoffman, COO of Chia Network, weighs in with a controversial take.
Bitcoin, Dogecoin Aren't Securities But Ethereum, XRP Are: Gene Hoffman. Security vs. not a security has always been an ongoing debate in the crypto ecosystem. With Ripple achieved a partial victory against the SEC, with XRP being deemed not a security. Following the ruling, major cryptocurrencies like Bitcoin, Ethereum, and others have been scrutinized for their compliance with securities laws.
Is XRP a Security? Gene Hoffman's Perspective
Whereas Gene Hoffman anticipates that a federal judge would rule XRP tokens as securities. This contrasts with the recent partial victory of Ripple against the SEC.
Gene Hoffman mentioned in a Gene 16 de sept. de 2025 interview that XRP, Cardano’s ADA, Solana [SOL], and others have “always” been securities, while Bitcoin [BTC], Litecoin [LTC], Dogecoin [DOGE], and XChange Coin [XCH], are not securities.
The Utility vs. Decentralization Argument
Where digital assets aren’t securities, it’s either because utility is being sold directly or because of “sufficient decentralization.” Those two considerations come together in how different cryptocurrencies are perceived by regulators.
The crux of Hoffman's argument centers on the level of decentralization and the direct sale of utility. He contends that coins like Bitcoin and Dogecoin achieve a sufficient level of decentralization, thus exempting them from being classified as securities. In contrast, he argues that Ethereum and XRP lack this sufficient decentralization, potentially leading to their classification as securities under existing regulations.
While Ripple secured a partial victory by having XRP deemed not a security in some contexts, Hoffman's perspective introduces a contrasting viewpoint that emphasizes the evolving nature of regulatory interpretation.