US Securities and Exchange Commission for a long time He was at odds With the cryptocurrency industry, especially regarding the security status of certain cryptocurrencies. Ripple CEO Brad Garlinghouse recently had some strong opinions on the matter that he's not afraid to share. Speaking in an interview, Garlinghouse noted that the SEC is “terribly wrong” in its approach to classifying both XRP and ETH as securities.
Garlinghouse: Obviously, XRP and ETH are not securities
Garlinghouse's opinion on the matter was first highlighted 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 He says $ Ethereum Not security and $XRP is not a security and that the SEC is “terribly wrong” and that Gary Gensler is an “immoral human being.” pic.twitter.com/MKuODQSAwr
– Eleanor Terret (@EleanorTerrett) May 4, 2024
It is no longer news that Ripple and the SEC have been in a legal tussle over the past few years regarding the security status of XRP, a cryptocurrency created by the payments technology company. Likewise, there have been recent reports that players at the SEC are now looking into Ethereum on whether or not it qualifies as a security.
Ripple and Garlinghouse have taken a strong stance over the years and have remained consistent regarding the non-security status of XRP. The CEO has now reiterated his view and provided some comments that crypto fans and investors would love to hear.
Aside from saying that XRP and ETH are not securities, Garlinghouse noted that SEC's Gary Gensler is an “unethical human being.” This is likely due to his criticism of the cryptocurrency industry, which many investors viewed as unfair.
Ethereum is now trading at $3138. Chart: TradingView
The future of crypto regulation
Garlinghouse's comments came at a critical time as regulators are closely monitoring cryptocurrencies. The cryptocurrency industry has yet to have a clear regulatory mechanism, and regulators around the world are working to make that a reality.
Interestingly, XRP is now the only cryptocurrency with regulatory clarity in the US after a federal judge Announce the sale of XRP For individual investors selling non-securities. However, both parties They are still in court Regarding the sale of XRP to institutional investors. Most analysts believe that this issue will Ultimately leading to a settlement.
At the time of writing, XRP is trading at $0.53. Its failure to surpass $1 over the past two years has prompted some investors and cryptocurrency analysts To name it Also being dead in terms of investing.
According to Fox Business a reportSEC Chairman Gensler may look to classify Ethereum as a security under the Howey Test. As the second largest cryptocurrency, Ethereum's classification as a financial currency could trigger a chain reaction of setbacks in its growth and that of other cryptocurrencies.
While Garlinghouse is critical of the SEC's handling of cryptocurrency regulation, he is optimistic about emerging regulations outside the US, especially in the European Union.
Featured image from Pexels, chart from TradingView