Ripple CEO Condemns SEC’s Legal Battles, Highlights Risk of Losing Battle with Ethereum

Ripple’s CEO, Brad Garlinghouse, has expressed his dissatisfaction with the U.S. Securities and Exchange Commission (SEC) and its legal battle against Ethereum. He warned that this ongoing feud could result in losses for the SEC in its war against Ethereum.

Garlinghouse specifically criticized the SEC for its struggles in court battles and its conflicts with other regulators like the Commodity Futures Trading Commission (CFTC). He also pointed out that the SEC is falling behind its international counterparts. He questioned when the SEC would realize that it is going to lose the war against Ethereum, just as it lost against Ripple’s XRP.

Garlinghouse’s criticism comes in light of the SEC’s recent regulatory campaign to classify Ethereum as a security. The SEC has issued subpoenas to U.S. companies as part of its investigation into Ethereum. The demand for documents and financial records from the Ethereum Foundation in Switzerland further highlights the SEC’s aggressive stance.

Garlinghouse drew parallels to Ripple’s legal victory over the SEC in the XRP case and warned that if the SEC does not adjust its approach to Ethereum, it could undermine its authority and credibility in the cryptocurrency space.

The ongoing debate over Ethereum’s status as a security has raised concerns within the industry. If Ethereum is classified as a security, it would fall under the SEC’s jurisdiction. This threatens the SEC’s plans to approve spot Ethereum ETFs this year, as it casts doubt on Ethereum’s prospects.

Garlinghouse also highlighted the increasing role of the SEC and other regulators, particularly the CFTC. This raises concerns about legal clarity and order in the financial system. He further warned that the SEC’s tough stance could hinder innovation and investment in the U.S., potentially harming its global competitiveness.