With the Securities and Exchange Commission (SEC) on the verge of deciding the fate of certain Ethereum (ETH) transactions, Ripple CEO Brad Garlinghouse steps into the fray, voicing his support for Ethereum’s stance as a non-security.
In a recent interview with Michael Arrington, Garlinghouse shares his perspective, injecting fresh energy into the ongoing debate.
Here’s what he had to say.
The Ethereum Debate
In an engaging exchange with Michael Arrington, Ripple CEO Brad Garlinghouse throws his weight behind Ethereum’s classification as a non-security. He doesn’t hold back in criticizing the SEC’s inclusion of both Ethereum and Ripple’s XRP in its securities-related investigations, going as far as to brand SEC Chair Gary Gensler as an “unethical human being.”
Garlinghouse’s vocal backing of Ethereum mirrors his past assertions regarding the SEC’s potential misclassification of ETH, drawing parallels with Ripple’s legal battles. Both XRP and ETH are caught up in legal tussles with the SEC, stemming from the agency’s 2020 lawsuit against Ripple, where XRP was initially labeled a security, only to be later refuted by a federal judge.
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Consensys Challenges SEC
Adding complexity to the narrative, Consensys Inc., a prominent Ethereum software development company, takes a bold stance against the SEC’s scrutiny, filing a lawsuit citing regulatory overreach. Consensys vehemently defends Ethereum’s non-security status, citing a previous SEC statement affirming ETH’s exemption from regulatory oversight.
Differing Opinions
The debate over Ethereum’s classification intensifies as former Ethereum advisor Steven Nerayoff contradicts Garlinghouse’s endorsement, labeling Ethereum as an “undeniable” security. Ripple’s forthcoming response to the ongoing legal saga further fuels speculation, especially after the SEC’s recent opposition to their motion regarding the Fox Declaration.
Amidst the regulatory storm, all eyes are on the potential approval of a spot Ethereum Exchange-Traded Fund (ETF). However, notable figures such as Justin Sun and Eric Balchunas cast doubt on its likelihood, citing the SEC’s cautious stance. Balchunas estimates a mere 25% chance of approval.
Also Check Out: Microstrategy’s Saylor Slams Ethereum With “Security” Label As SEC Scrutiny Delays ETF Launch
Do you think spot Ethereum ETFs are a lost cause? Chime in.
Read More: Ripple CEO Continues Backing Ethereum, Claiming ETH and XRP As Non-Securities