Ripple’s CEO Garlinghouse Voices Support for Ethereum Amid SEC’s Security Classification
Key Takeaways
– Ripple CEO Brad Garlinghouse expresses his support for Ethereum’s classification as a non-security.
– Garlinghouse criticizes the SEC’s investigation into both Ripple’s XRP and Ethereum, calling SEC Chair Gary Gensler “unethical.”
– Consensys Inc., an Ethereum software development company, files a lawsuit against the SEC, defending Ethereum’s non-security status.
– Former Ethereum advisor Steven Nerayoff disagrees with Garlinghouse, stating that Ethereum is a security.
– The approval of a spot Ethereum ETF is unlikely in May due to the SEC’s negative stance.
Ripple CEO Brad Garlinghouse has joined the ongoing discussion about the classification of Ethereum (ETH) as a non-security, expressing his support for the stance taken by the cryptocurrency. In an interview with Michael Arrington, Garlinghouse criticized the Securities and Exchange Commission (SEC) for including Ethereum and Ripple’s XRP in its securities-related investigations. He went as far as calling SEC Chair Gary Gensler an “unethical human being.”
Garlinghouse’s support for Ethereum’s classification aligns with his previous statements regarding the SEC’s potential misclassification of ETH. Both Ripple’s XRP and Ethereum are facing legal battles with the SEC, stemming from the agency’s lawsuit against Ripple in 2020. Initially, XRP was labeled as a security but later refuted by a federal judge.
Adding complexity to the situation, Consensys Inc., a prominent Ethereum software development company, has filed a lawsuit against the SEC, citing regulatory overreach. Consensys strongly defends Ethereum’s non-security status and references a previous SEC statement that confirmed ETH’s exemption from regulatory oversight.
However, not everyone agrees with Garlinghouse’s endorsement. Former Ethereum advisor Steven Nerayoff contradicts Garlinghouse’s stance and asserts that Ethereum is an “undeniable” security. Ripple’s response to the ongoing legal battle will likely contribute to the speculation surrounding Ethereum’s classification.
Meanwhile, all eyes are on the potential approval of a spot Ethereum Exchange-Traded Fund (ETF). However, notable figures like Justin Sun and Eric Balchunas doubt its likelihood due to the SEC’s cautious stance. Balchunas estimates a mere 25% chance of approval.
In conclusion, Ripple CEO Brad Garlinghouse has voiced his support for Ethereum’s classification as a non-security, criticizing the SEC’s investigation into both Ripple’s XRP and Ethereum. The legal battles and differing opinions surrounding Ethereum’s classification continue, and the approval of a spot Ethereum ETF in May seems unlikely due to the SEC’s negative stance.