Ripple CEO Brad Garlinghouse made some bold statements linked to both XRP and Ethereum’s status. This comes in when Ripple is facing legal scrutiny launched by the US Securities and Exchange Commission (SEC). However, the Ethereum Foundation also faces regulatory challenges that might affect the big industry players.
Ripple CEO fires back
According to reports, Brad Garlinghouse asserted that both Ethereum and Ripple’s XRP should not be classified as securities. The statement came in during a fireside chat at the XRP Las Vegas 2024 event with the founder of Arrington Capital.
Ripple CEO criticized the SEC for including both assets in its securities-related scrutiny. He then went on to call out Commission’s Chair Gary Gensler and labeled him as “unethical.”
It is important to note that this was not the first time that Garlinghouse came ahead to express his support for Ether. Back in March, he stated that the SEC would fail in its attempt to classify ETH as a security. The statement was made when the commission lost against XRP in court.
The crypto industry is already dealing with regulatory challenges as both XRP and ETH have been under scrutiny. The commission filed a lawsuit against Ripple and labeled XRP as a security. A federal judge ruled last year that the crypto is not a security. However, Ripple was found to have violated laws by offering and selling XRP to institutional clients.
Reports suggest that Ethereum has not been explicitly deemed a security by the SEC. The agency is investigating whether certain ETH transactions constitute investment contracts.
What’s happening?
Consensys Inc., a software development company founded by Ethereum co-founder Joseph Lubin, has sued the SEC. It is being argued that ETH lacks securities characteristics and should not be regulated as such. Consensys cited a previous statement from the SEC, made by former director William Hinman, affirming that ETH is not a security.
XRP is dealing with high selling pressure, its price is down by 13% on the year to date (YTD) basis. It is trading at an average price of $0.53, at the press time. Its 24 hour trading volume has dropped by 17% to stand at $900 million.
Ethereum rode on the bullish sentiments unlocked by gaining approval for spot Bitcoin ETF from the SEC. ETH price is up by 39% on YTD basis. ETH is trading at an average price of $3,160, at the press time.