Expectations from Ripple Leaders: SEC to Lose Battle Over Ethereum Security Status

Crypto News- Ripple’s CEO Brad Garlinghouse recently took to social media to voice his confidence that the US Securities and Exchange Commission (SEC) will face another setback, this time in its potential classification of Ethereum as a security. Drawing parallels to the SEC’s unsuccessful classification battle against Ripple’s XRP token, Garlinghouse asserted that the SEC’s track record in the courts signals a probable defeat in any attempt to label ETH as a security.

Expectations from Ripple Leaders: SEC to Lose Battle Over Ethereum Security Status

In his post on March 22, Garlinghouse highlighted the regulatory body’s recent confrontations within the industry and its apparent struggles against fellow regulators like the Commodity Futures Trading Commission (CFTC), alongside falling behind international regulatory counterparts. Echoing Garlinghouse’s sentiments, Ripple’s Chief Legal Officer, Stuart Alderoty, called for a halt to the funding of what he described as “insanity” by the US Congress.

The SEC’s reported investigation into entities linked with Ethereum, including the Ethereum Foundation, has sparked widespread criticism, both from within the crypto community and from US legislators. Notably, Paul Grewal, Coinbase’s Chief Legal Officer, pointed out numerous instances where the SEC had previously characterized Ethereum as a commodity rather than a security. Grewal referenced statements from former SEC official William Hinman and congressional hearings featuring Gary Gensler before his tenure as SEC Chair, all of which indicated Ethereum’s classification as a commodity.

Unraveling the Ethereum-XRP Community Feud: A Tale of Crypto Rivalry

Despite historical animosity between the XRP and Ethereum communities, Ripple executives’ recent support for Ethereum comes as a surprise. XRP supporters have long accused Ethereum of receiving preferential treatment from the SEC, alleging that this contributed to its widespread adoption and development over the years. Additionally, tensions between the projects were exacerbated by Ethereum co-founder Vitalik Buterin’s past criticisms of XRP.

The unfolding saga underscores the complex dynamics within the crypto space and the ongoing regulatory challenges facing various digital assets.