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Ripple CEO Brad Garlinghouse made bold statements about the situation of XRP and Ethereum. These statements came during Ripple's legal review process initiated by the US Securities and Exchange Commission (SEC). Similarly, the Ethereum Foundation is facing regulatory challenges that could impact major industry players.
These statements by Garlinghouse came amid uncertainties regarding the SEC investigation of Ripple and XRP. At the same time, Ethereum also faces regulatory challenges.
Ripple CEO Responds
According to reports, Brad Garlinghouse claimed that both Ethereum and Ripple's XRP should not be classified as securities.
Ripple CEO criticized the SEC's inclusion of both entities in its securities review and called Commission Chairman Gary Gensler "unethical."
It is important to note that this is not the first time Garlinghouse has come forward to express his support for ETH. In March, he predicted that the SEC would fail in its attempt to classify ETH as a security. This statement was made after the commission lost the case against XRP in court.
The fact that both XRP and ETH are under review comes at a time when the crypto industry is already dealing with regulatory challenges. The SEC filed a lawsuit against Ripple and designated XRP as a security. But a federal judge ruled last year that crypto is not a security. However, Ripple was found to be violating the law by offering and selling XRP to institutional customers.
Reports indicate that Ethereum is not expressly recognized as a security by the SEC. However, the agency is investigating whether certain ETH transactions constitute investment contracts.
What's Happening with XRP and Ethereum?
Consensys Inc., a software development company founded by Ethereum co-founder Joseph Lubin, filed a lawsuit with the SEC. It is argued that ETH lacks security characteristics and should not be regulated as such. Consensys cited a previous statement from the SEC made by former director William Hinman confirming that ETH is not a security.
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