For many years, the U.S. Securities and Exchange Commission I was in a loggerhead sea turtle The cryptocurrency industry, especially regarding the security situation of some cryptocurrencies. Ripple CEO Brad Garlinghouse recently had some strong opinions on the issue that he wasn't afraid to share. Garlinghouse said in an interview that the SEC's approach to classifying both XRP and ETH as securities is “grossly flawed.”
Garlinghouse: XRP and ETH are clearly not securities
Garlinghouse's position on the issue was first revealed in a social media post by Fox Business journalist Eleanor Terret. His comments were made during a fireside chat held in Las Vegas to discuss the future of digital assets.
🚨New: @Ripple CEO @bgarlinghouse To tell $ETH is not a security, $XRP is not a security, that the SEC is “grossly wrong” and that Gary Gensler is “an unethical person.” pic.twitter.com/MKuODQSAwr
— Eleanor Terrett (@EleanorTerrett) May 4, 2024
It is no longer news that Ripple and the SEC have been engaged in a legal battle for the past several years over the security status of XRP, a virtual currency developed by the payments technology company. Similarly, there are recent reports that SEC officials are currently investigating whether Ethereum qualifies as a security.
Ripple and Garlinghouse have taken strong stances over the years and remain adamant regarding XRP's non-security status. The CEO reiterated his views and made some comments that crypto enthusiasts and investors will want to hear.
Apart from stating that XRP and ETH are not securities, Garlinghouse also pointed out that the SEC's Gary Gensler is an “unethical person.” This is likely due to his criticism of the crypto industry, which many investors consider unfair.
Ethereum is now trading at $3138. Chart: TradingView
The future of virtual currency regulation
Garlinghouse’s comments come at a critical time when cryptocurrencies are under increased scrutiny from regulators. The cryptocurrency industry still lacks a clear regulatory mechanism, and regulators around the world are working to make this a reality.
Interestingly, due to a federal judge's ruling, XRP is now the only clearly regulated cryptocurrency in the United States. Declare the sale of XRP Sales of non-securities to retail investors.However, both still in court Regarding the sale of XRP to institutional investors.Most analysts believe this case will Eventually a settlement will be reached.
As of this writing, XRP is trading at $0.53. This is what some investors and crypto analysts are thinking, as it has not been able to break above $1 for the past two years. label it It's kind of dead when it comes to investing.
According to Fox Business report, SEC Chairman Gensler may be considering classifying Ethereum as a Howie Test security. The classification of Ethereum, the second largest cryptocurrency, as a security could lead to a chain reaction in its growth and setbacks for other cryptocurrencies.
Although Garlinghouse is critical of the SEC's handling of crypto regulations, he is optimistic about new regulations emerging outside the United States, particularly in the European Union.
Featured images from Pexels, charts from TradingView
