Ripple CEO Continues Backing Ethereum, Claiming ETH and XRP As Non-Securities
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As the SEC is all set to see if certain ETH transactions qualify as securities, Ripple CEO, Brad Garlinghouse is seen backing Ethereum for not being a security in a recent interview With Michael Arrington.
Garlignhouse’s support comes just after the notable BTC personality, Michael Saylor indirectly hinted at Ethereum as being unregistered securities. Saylor had also included XRP, Solana (SOL), Binance Coin (BNB), and Cardano (ADA) in the list of unregistered securities. He also believes these coins will never have their spot exchange-traded funds (ETFs).
Brad labels SEC Chair as Unethical
Brad, in his fireside chat with the Arrington Capital founder and partner at the XRP Las Vegas 2024 event, made a point that the SEC was “grossly wrong” for involving both the assets in its securities-related scrutiny. He also described SEC Chair Gary Gensler as an “unethical human being.” The Fox Business reporter Eleanor Terret shared Garlinghouse’s comment in an X post.
The Ripple CEO has also previously supported ETH and had asserted that SEC could fail to label ETH as a security just like it failed against XRP. For the unversed, both XRP and ETH are undergoing a legal tussle against the SEC. In 2020, the agency had labeled XRP a security in its lawsuit against Ripple. However, last year a U.S. federal judge declared that XRP is not a security. The judge had also declared that Ripple violated the law when it offered and sold the coin to institutional clients.
Consensys’s Strong Foot Forward
Responding to the SEC’s scrutiny, Consensys Inc.,an Ethereum software development company, sued the regulator, citing it as regulatory overreach. Consensys claimed that the SEC aims to regulate ETH as a security despite its lack of securities characteristics. The company also presented its strong argument by referring to a previous statement from the SEC affirming that ETH is not a security and falls outside the SEC’s regulatory purview.
SEC against the Fox Declaration
Notably, former Ethereum advisor Steven Nerayoff has labeled Ethereum as security and has called it “undeniable.” Ripple’s upcoming response to the XRP vs SEC lawsuit is significant after the SEC opposed their motion regarding the Fox Declaration only to provide a summary of XRP institutional sales and not expert analysis. The SEC continues to maintain that Fox’s declaration lacks personal opinion.
Currently, the major focus of the market has been the spot Ethereum ETF approval amidst the SEC’s take on it. The broader market view has been negative, with notable figures like Justin Sun and Eric Balchunas denying the possibility of approval in May. Balchunas has only cited 25% likelihood given the SEC’s negative outlook.
