Top Ripple executives have once again criticized the United States Securities and Exchange Commission (SEC) for its lack of clarity in regulating digital assets, particularly in light of the uncertainty surrounding the agency’s stance on approving an Ethereum ETF.
On March 22, Ripple Labs Chief Executive Officer (CEO) Brad Garlinghouse took to X to express his dissatisfaction with the regulator’s numerous legal battles against the crypto industry and its ongoing struggles in court. The Ripple boss wrote, “The Securities and Exchange Commission picked fights with the crypto industry and is currently losing badly in the Courts.”
He added that the national regulator is now fighting fellow regulators like the Commodity Futures Trading Commission and also needs to catch up to international counterparts. He concluded that the SEC would lose the war against Ethereum (ETH) just as it lost against Ripple (XRP).
In response to Garlinghouse’s remarks, Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), weighed in on the situation, urging “the US Congress to stop funding this insanity.”
Garlinghouse’s statement came in response to a post by Paul Grewal, Coinbase’s Chief Legal Officer, regarding the classification of ETH as both a security and a commodity. Grewal questioned the SEC’s controversial position on the anticipated approval of an Ethereum exchange-traded product (ETP).
Both Ripple Labs and Coinbase executives’ comments reflect the ongoing debate surrounding the SEC’s classification of Ethereum. While the SEC has deemed the majority of crypto assets as securities, it has yet to make a definitive ruling on ETH’s classification.
In 2018, the SEC’s former Director of Corporation Finance, William Hinman, stated that Ethereum (ETH) did not exhibit the characteristics of a security. However, current Chairperson Gary Gensler’s perspective differs. He has reportedly suggested that digital assets built on Proof-of-Stake (PoS) consensus mechanisms could fall under securities regulation. Gensler has not provided a clear statement on Ether’s status.
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