Ripple’s chief executive believes the U.S. Securities and Exchange Commission (SEC) will be unsuccessful in classifying ether as a security, similar to how the agency lost its legal battle, for the most part, against XRP. Noting that the SEC has been “losing badly in courts” against crypto firms, the Ripple CEO stated: “At what point will the SEC realize they will lose the war against ETH just as they lost against XRP?”
Ripple CEO Expects SEC to Lose Against Ethereum, Mirroring XRP Lawsuit Outcome
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Brad Garlinghouse on SEC Potentially Going After Ethereum
Ripple CEO Brad Garlinghouse has commented on reports suggesting that the U.S. Securities and Exchange Commission (SEC) could be targeting ether for being an unregistered security.
Garlinhouse wrote on social media platform X Thursday: “The SEC picked fights with the industry and is losing badly in the courts. They’re now fighting fellow regulators like the CFTC [Commodity Futures Trading Commission], and falling behind international counterparts.” He added:
At what point will the SEC realize they will lose the war against ETH just as they lost against XRP?
Although the SEC has not officially declared ether’s status, SEC Chairman Gary Gensler has consistently avoided directly stating whether ETH is classified as a security or a commodity. Gensler has frequently mentioned that most crypto tokens, besides bitcoin, are considered securities. This week, the Ethereum Foundation reportedly received a “voluntary inquiry from a state authority.”
The Ripple executive’s statement was in response to a thread by Coinbase’s chief legal officer (CLO), Paul Grewal, urging investors to await the SEC decision on spot ether exchange-traded products (ETPs) and ignore any “ ETH misinformation” reported in the media.
Grewal stressed: “Millions of Americans hold ETH; it has been vital to crypto since its 2015 launch; and ETH is a commodity, not a security. The SEC has taken this position for years.”
Additionally, the Coinbase CLO pointed out that the CFTC and federal courts “have consistently confirmed that ETH is a commodity.” He concluded:
The SEC has no good reason to deny the ETH ETP applications. And we hope they won’t try to invent one by questioning the long-established regulatory status of ETH, which the SEC has repeatedly endorsed. That’s not how the law works. And Americans deserve better.
Do you think the SEC will go after ETH and lose in court like it did in the Ripple and XRP case? Let us know in the comments section below.
