Ripple CEO Brad Garlinghouse has made a bold statement as the company continues its legal battle with the US Securities and Exchange Commission (SEC). In his latest statement, Ripple's CEO not only endorsed XRP, but also extended his support to Ethereum (ETH) as the token vs. securities debate intensifies. Additionally, he slammed the SEC and Chairman Gary Gensler.
Ripple CEO backs XRP and Ethereum
Garlinghouse made scathing remarks about the SEC during a fireside chat with Michael Arrington, founder of Arlington Capital. According to a post on X by FOX journalist Eleanor Terret, Ripple's CEO said the SEC was “just wrong.” Additionally, Garlinghouse labeled the SEC's Gensler an “unethical person.”
He further pointed out that both XRP and Ethereum are not securities. This comes after nearly four years of legal battles in Ripple vs. SEC and the newly launched ConsenSys vs. SEC case. ConsenSys' lawsuit asks regulators to consider that Ethereum is not a security.
However, the SEC has already classified Ethereum as a security once, which makes this statement contradictory. Meanwhile, netizens are discussing this with some supporters of ConsenSys, including the CEO of Ripple. However, former Ethereum advisor Steven Nelayoff labeled Ethereum as a security and considered it an “undeniable” fact.
Also read: XRP Price Prediction: XRP Eyes Big Reversal as Buyers Enter at $0.48
XRP vs. SEC litigation updates
Ripple's future response to this lawsuit will be an important milestone, especially after the SEC opposed Ripple's motion regarding the Fox Declaration. The SEC claims that the Fox declaration is not an expert analysis and only provides an overview of institutional sales of XRP.
Moreover, they argue whether it is permissible under the law by analogy to the previously filed Ferrante Declaration. However, Ripple is expected to dispute claims of economic harm arising from this declaration.
Meanwhile, Judge Sarah Netburn issued a scheduling order regarding Ripple Labs' motion to quash new expert evidence submitted by the SEC. This evidence supports the SEC's claim for relief and final judgment, which could result in Ripple paying nearly $2 billion in penalties.
Furthermore, in response to the SEC's April 29 challenge, Ripple has three business days to file a response, per Judge Netburn's order. Legal experts note the SEC's aggressive response, but argue that Ripple's claims remain valid unless the summary of its financial records is challenged.
Despite Ripple's position, the SEC said Fox's declaration lacked a personal opinion and reflected its counsel's instructions to assess potential financial damages to institutional investors. He claims that it is not too much.
Also read: 400 million XRP just unlocked from escrow, is XRP price about to skyrocket?
