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The US Securities and Exchange Commission has long been at loggerheads with the crypto industry, especially concerning the security status of some cryptocurrencies. Ripple CEO Brad Garlinghouse recently had some strong opinions on the matter that he’s not afraid to share. While speaking at an interview, Garlinghouse noted that the SEC is “grossly wrong” in its approach of classifying both XRP and ETH as securities.
Garlinghouse: XRP And ETH Are Clearly Not Securities
Garlinghouse’s take on the matter was first brought to light in a social media post by Fox Business journalist Eleanor Terrett. His comments were made in a fireside chat that took place in Las Vegas to discuss the future of digital assets.
🚨NEW: @Ripple CEO @bgarlinghouse says $ETH is not a security and $XRP is not a security and that the SEC is “grossly wrong” and Gary Gensler is an “unethical human being.” pic.twitter.com/MKuODQSAwr
— Eleanor Terrett (@EleanorTerrett) May 4, 2024
It is no longer news that Ripple and the SEC have been in a legal tussle 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 players at the SEC are now looking into Ethereum on whether it qualifies as a security or not.
Ripple and Garlinghouse have taken a strong stance over the years and remain steadfast regarding XRP’s non-security status. The CEO has now reiterated his view and made some comments that crypto enthusiasts and investors would love to hear.
Apart from saying that XRP and ETH are not securities, Garlinghouse noted that SEC Gary Gensler is an “unethical human being.” This is most likely because of his criticisms against the cryptocurrency industry, which many investors have deemed to be unjust.
The Future Of Crypto Regulation
Garlinghouse’s comments have come at a critical time when regulators are closely monitoring cryptocurrencies. The crypto industry is yet to have a clear-cut regulatory mechanism and regulators around the world are working to make this 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 sale of non-securities. However, both parties are still in court regarding the sale of XRP to institutional investors. Most analysts think the case will eventually result in a settlement.
At the time of writing, XRP is trading at $0.53. Its failure to break above $1 for the past two years has led some investors and crypto analysts to label it as being dead in terms of investment.
According to a Fox Business report, SEC Chair Gensler could be looking to class Ethereum as a security under the Howey Test. As the second largest cryptocurrency, Ethereum’s classification as a security could lead to a chain reaction of setbacks in its growth and 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
