The legal battle between the United States Securities and Exchange Commission (SEC) and ethereum (eth) has become an intriguing case within the entire cryptocurrency landscape, with several experts predicting possible outcomes regarding the dispute.
Ripple CEO Warns of US SEC's Inevitable Defeat Against ethereum
As the battle rages on, Ripple Labs Chief Executive Officer (CEO) Brad Garlinghouse has revealed his optimistic thoughts on the case, while sharing a bold prediction in favor of the ethereum ecosystem. His positive thoughts emerged in light of reports that the SEC is attempting to classify ethereum “as a security” through its legal dispute with the digital asset.
Brad Garlinghouse has predicted that the US regulatory body will most likely “lose its war against ethereum,” the second-largest cryptocurrency asset. According to Garlinghouse, the Commission's various “attempts to include the cryptocurrency industry in legal battles have resulted in serious legal losses” over time.
As a result, the agency is now “lagging behind its foreign counterparts” and “competing with other regulators,” such as the U.S. Commodity Futures Trading Commission (CFTC).
The Ripple CEO then posed a question: “When would the SEC realize that it couldn't continue fighting to categorize ethereum as a security, like it did with XRP?”
It is noteworthy that Coinbase filed self-certifications with the CFTC on March 7, which could pave the way for bitcoin Cash (BCH), Dogecoin (DOGE), and Litecoin (LTC) futures exchange-traded funds (ETFs), if the CTFC has no complaints against him. .
Consequently, the SEC's prospects of overturning the ruling on “Programmatic Sales of XRP” could be affected by the CFTC's categorization of these aforementioned tokens as commodities. This could be one of the reasons why the SEC could be fighting the CFTC.
Ripple's partial victories against the SEC
Vibe first won a partial victory in its lawsuit with the agency when Judge Analisa Torres declared in July last year that programmatic sales of XRP do not meet the requirements of the third part of the Howey Test. Furthermore, three months later, the US judge denied the SEC's request for an interlocutory appeal against the programmatic sale order.
Due to the order, the SEC will not be able to file an appeal until the conclusion of the ongoing process. SEC Lawsuit Against Ripple. The resolution of this dispute is believed to have a profound impact on the US regulatory landscape and the cryptocurrency landscape as a whole.
The long-running legal dispute between Ripple and the US SEC began in 2020 when the Commission accused Ripple of selling XRP to US investors as an unregistered security. However, the long battle is slowly approaching its climax, as the grand trial is scheduled for April 23.
Featured image from iStock, chart from Tradingview.com