Acting SEC Chair Says Ethereum Is Not Security, Dodges Question About XRP

In a recent interview on CNBC, Acting U.S. Securities and Exchange Commission (SEC) Chairman Mark Uyeda affirmed that Bitcoin and Ethereum are not classified as securities, aligning with the stance of former Chair Gary Gensler.

Uyeda stated, “My predecessor, Chairman Gensler, has made it pretty clear that Ethereum and Bitcoin are not securities. If involved either of those two, it would not be insider trading because it does not involve the purchase of securities.”

Despite this clarification, Uyeda refrained from commenting on the legal status of XRP when questioned by host Andrew Ross Sorkin. This omission leaves the classification of XRP ambiguous, especially in light of recent legal developments involving Ripple Labs, the company associated with XRP.

SEC’s Legal Proceedings Against Ripple Labs

The SEC initiated a lawsuit against Ripple Labs in December 2020, alleging that the company conducted an unregistered securities offering by selling XRP tokens.

In July 2023, U.S. District Judge Analisa Torres ruled that XRP sold on public exchanges did not meet the legal definition of a security. However, she also determined that Ripple’s $728 million in sales to institutional investors should have complied with securities laws, leading to a proposed $125 million fine.

In March 2025, Ripple CEO Brad Garlinghouse announced that the SEC would withdraw its appeal against the company, effectively concluding the prolonged legal battle. Garlinghouse described this development as a “resounding victory” for Ripple and the broader cryptocurrency industry.

Political Scrutiny and Allegations of Influence

The SEC’s decision to drop its appeal has attracted political attention. According to a recent Times Tabloid report, U.S. Senator Elizabeth Warren sent a letter to the SEC’s Office of Inspector General on April 2, 2025, requesting an investigation into potential undue influence over the SEC’s recent decisions regarding cryptocurrency enforcement.

The letter specifically mentions Ripple Labs multiple times and raises questions about the timing of the SEC’s dismissal of its case against the company. Senator Warren’s inquiry seeks to determine whether political pressure or conflicts of interest affected the SEC’s actions.

Implications for XRP’s Regulatory Status

While the SEC has ceased its legal pursuit of Ripple, the agency has not officially declared XRP’s regulatory status. The absence of a definitive statement from Acting Chair Uyeda during the CNBC interview, coupled with the conclusion of legal proceedings, leaves the classification of XRP in a state of uncertainty.

Market participants and legal experts may need to await further guidance from the SEC or future legislative actions to gain clarity on XRP’s standing within the regulatory framework.

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