Ripple CEO Brad Garlinghouse has once again criticized the Securities and Exchange Commission’s (SEC) stance on cryptocurrencies.
During a fireside chat at the XRP Las Vegas 2024 event, Garlinghouse asserted that neither XRP, the digital asset majorly distributed by Ripple, nor Ethereum (ETH) should be regulated as securities.
Read Also: Forbes: Ripple CEO’s Confidence is Aiding XRP to Outperform Bitcoin (BTC)
SEC Scrutiny and Ripple’s Legal Status
The Ripple CEO’s comments arrive amid Ripple’s ongoing legal battle with the SEC. The agency filed a lawsuit alleging that XRP constitutes security, a claim Ripple has consistently denied. While a federal judge ruled that the digital asset is not a security, the court did find that Ripple violated laws for offering and selling XRP to institutional clients.
Garlinghouse extended his commentary to target SEC Chair Gary Gensler, describing him as “unethical” regarding the commission’s handling of cryptocurrency regulation.
Ethereum’s Regulatory Landscape
The SEC is also scrutinizing Ethereum, with an active investigation into whether certain ETH transactions might qualify as investment contracts, potentially subjecting the cryptocurrency to securities regulations. However, unlike XRP, Ethereum has never been explicitly labeled as a security by the SEC.
Consensys Inc., a software company founded by Ethereum co-founder Joseph Lubin, has sued the SEC, preemptively challenging the SEC’s authority to regulate Ethereum. Consensys argues that ETH lacks the hallmarks of security and cites a previous statement from former SEC director William Hinman supporting this position.
Market Performance Amidst Uncertainty
Ripple’s XRP token has faced significant selling pressure, dropping by over 10% year-to-date. According to data from CoinMarketCap, XRP currently trades at an average price of $0.535. Ethereum (ETH) on the other hand has experienced impressive growth this year, appreciating by over 39%.
This surge is likely fueled by the SEC’s approval of a spot Bitcoin ETF, generating broader optimism in the cryptocurrency market. Coinmatetcap data reveals ETH’s current price to be $3,139.
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Read Also: Top Crypto Proponent Backs $1,000 XRP Price Target With Major Bullish Factor
Ripple CEO’s Support for Ethereum
This isn’t the first time Garlinghouse has backed Ethereum. Following a positive court outcome for Ripplen in March, he expressed confidence that the SEC would ultimately fail to classify ETH as a security.
The battle over cryptocurrency regulation is far from over, and Ripple’s lawsuit with the SEC continues to be closely watched. The legal and regulatory outcomes for XRP, Ethereum, and the crypto industry at large remain uncertain.
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