Ethereum Classification Supported By Ripple CEO In Battle With SEC

Key Points:

• Ripple CEO Brad Garlinghouse expresses support for Ethereum amidst SEC legal battle, criticizing SEC and Chairman Gary Gensler.
• Garlinghouse reaffirms Ethereum’s non-security status in an interview, highlighting parallels with Ripple’s legal challenges.
• The legal debate over Ethereum classification intensifies as Consensys sues SEC for regulatory overreach.

Ripple CEO Brad Garlinghouse has taken a firm stance amidst the escalating legal dispute with the U.S. Securities and Exchange Commission (SEC).

Ripple CEO Stands by Ethereum Amid SEC Battle

In his latest remarks, Garlinghouse not only expressed support for XRP but also extended solidarity towards Ethereum (ETH) amid the increasing debate over tokens versus securities. Additionally, he criticized the SEC and its Chairman, Gary Gensler.

During an interview with Michael Arrington, Garlinghouse reiterated his backing for Ethereum, emphasizing its non-security classification. This affirmation follows comments from prominent figures like Michael Saylor, who indirectly suggested Ethereum’s potential status as an unregistered security.

Garlinghouse‘s support for Ethereum came during a fireside chat at the XRP Las Vegas 2024 event, where he condemned the SEC’s involvement of both Ethereum and XRP in its securities-related investigations, labeling Gensler as “unethical.”

The Ripple CEO’s vocal support for Ethereum reflects his past assertions regarding the SEC’s Ethereum classification, drawing parallels with Ripple’s legal battles. Both XRP and ETH are entangled in legal disputes with the SEC, stemming from the agency’s 2020 lawsuit against Ripple, which initially labeled XRP as a security but was later refuted by a federal judge.

Legal Dispute Over Ethereum Classification Deepens Amid Regulatory Scrutiny

Garlinghouse’s previous endorsement of Ethereum aligns with his belief that the SEC may fail to classify ETH as a security, similar to its failure with XRP. While the SEC has yet to officially determine Ether’s status, Gensler has consistently refrained from directly stating whether ETH is classified as a security or a commodity. This ambiguity has led to heightened scrutiny and legal action, including a lawsuit by Consensys Inc., an Ethereum software development company, against the SEC for regulatory overreach.

The debate surrounding Ethereum classification continues to intensify, especially with Ripple’s impending response to the ongoing legal saga. The SEC’s recent opposition to Ripple’s motion further fuels speculation about the future regulatory landscape for cryptocurrencies.