The US Securities and Exchange Commission has long disagreed with the crypto industry, especially regarding the security status of some cryptocurrencies. Ripple CEO Brad Garlinghouse recently had some strong opinions on the topic that he's not afraid to share. While speaking in an interview, Garlinghouse noted that the SEC is “very wrong” in its approach to classifying both XRP and eth as securities.
Garlinghouse: XRP and eth are clearly not securities
Garlinghouse's opinion on the matter first came to light in a social media post by Fox Business journalist Eleanor Terrett. Her comments were made at a fireside chat that took place in Las Vegas to discuss the future of digital assets.
<blockquote class="twitter-tweet”>
NEW: twitter.com/Ripple?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>@Vibe CEO twitter.com/bgarlinghouse?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>@bgarlinghouse says twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$eth It is not a security and twitter.com/search?q=%24XRP&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$XRP is not a value and that the SEC is “wildly wrong” and that Gary Gensler is an “unethical human being.” pic.twitter.com/MKuODQSAwr
-Eleanor Terrett (@EleanorTerrett) twitter.com/EleanorTerrett/status/1786583720495059122?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>May 4, 2024
It is no longer news that Ripple and the SEC have been in a legal dispute for the past few years regarding the security status of XRP, a cryptocurrency created by the payments technology company. Similarly, there have been recent reports that SEC actors are now investigating whether ethereum qualifies as a security or not.
Ripple and Garlinghouse have taken a strong stance over the years and remain firm regarding the non-security status of XRP. The CEO has now reiterated his point of view and made some comments that cryptocurrency enthusiasts and investors would love to hear.
In addition to saying that XRP and eth are not securities, Garlinghouse noted that SEC Gary Gensler is an “unethical human being.” This is likely due to his criticism of the cryptocurrency industry, which many investors have considered unfair.
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ethereum is now trading at $3138. Chart: TradingView
The future of crypto regulation
Garlinghouse's comments come at a critical time when regulators are closely monitoring cryptocurrencies. The crypto industry still does not have a clear regulatory mechanism and regulators around the world are working to make it a reality.
Interestingly, XRP is now the only cryptocurrency with regulatory clarity in the US after a federal judge declared the sale of XRP to retail investors selling non-securities. However, both parties they are still in court regarding the sale of XRP to institutional investors. Most analysts believe that the case will eventually result in an agreement.
At the time of writing, XRP is trading at $0.53. Its failure to surpass the dollar over the past two years has led some crypto investors and analysts to label it as dead in terms of investment.
According to Fox Business report, SEC Chairman Gensler could be looking to classify ethereum as a security under the Howey test. As the second-largest cryptocurrency, ethereum's classification as a security could cause a chain reaction of setbacks in its growth and in other cryptocurrencies.
While Garlinghouse is critical of the SEC's handling of crypto regulation, he is optimistic about regulations emerging outside the US, especially in the European Union.
Featured image from Pexels, chart from TradingView
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