Ripple leaders forecast SEC defeat in Ethereum security saga Ripple leaders forecast SEC defeat in Ethereum security saga
The US SEC has stepped up its scrutiny of Ethereum, inadvertently uniting the crypto community against it.
2 min read
Updated: Mar. 22, 2024 at 11:54 am UTC
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Ripple CEO Brad Garlinghouse said the US Securities and Exchange Commission (SEC) would lose its war against Ethereum.
In a March 22 post on social media platform X (formerly Twitter), Garlinghouse pointed out that the financial regulator lost its securities classification battle against his company’s XRP token and is on course to suffer a similar fate if it attempts to classify ETH as security.
According to him:
“The SEC picked fights with the industry and is losing badly in the Courts. They’re now fighting fellow regulators like the CFTC, and falling behind international counterparts.”
Ripple’s Chief legal officer Stuart Alderoty, sharing similar views with Garlinghouse, added that the US Congress should stop funding this “insanity.”
SEC vs Ethereum
This week, reports surfaced that the Gary Gensler-led Commission was investigating entities associated with Ethereum, such as the Ethereum Foundation, to categorize ETH as a security.
This development sparked significant criticism from the crypto community and US legislators, who voiced concerns over the SEC’s aggressive stance toward the emerging industry.
Paul Grewal, the chief legal officer at Coinbase, highlighted numerous instances where the SEC and its representatives have characterized Ethereum as a commodity.
According to him, statements from former high-ranking SEC official William Hinman and congressional hearings and testimony from Gensler before he became the SEC chair show that the digital asset was not a security.
In addition, Grewal pointed out instances where the SEC lawyers have tried to compare ETH to BTC.
Ethereum, XRP community animosity
Meanwhile, the Ripple executives’ support for Ethereum is a surprise, given the historical friction between the XRP community and ETH.
For years, XRP supporters have alleged that ETH got preferential treatment from the SEC over its non-declaration as a security by former SEC official Hinman. They argue that this contributed to Ethereum’s widespread adoption and development over subsequent years.
Furthermore, Ethereum co-founder Vitalik Buterin‘s past negative remarks about XRP exacerbated the rivalry between the two projects.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
XRP
$0.52053
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
Brad Garlinghouse stands at the forefront of financial technology as the CEO of Ripple.
Paul Grewal is the Chief Legal Officer of Coinbase where he is responsible for Coinbase’s legal, compliance, global intelligence, risk management and government relations groups.