Brad Garlinghouse: "The American regulator will lose the war with the ether"

The CEO of Ripple suggested that the U.S. Securities and Exchange Commission (SEC) would fail in attempts to classify ether as a security.

Brad Garlinghouse: "The American regulator will lose the war with the ether"

Brad Garlinghouse believes that the SEC has been at war with the crypto industry for a long time. But lately, the regulator has been losing more often in the courts. The agency is now fighting with other government agencies, including the U.S. Commodity Futures Trading Commission (CFTC).

The head of Ripple spoke in response to a statement by Paul Grewal, general counsel of the American crypto exchange Coinbase that the status of the ether is beyond doubt. After all, other agencies, including the CFTC, consider this altcoin a commodity. Greuel accused the SEC of creating flimsy excuses for refusing to approve applications to launch spot ETFs linked to ether.

Recently, even former CFTC commissioner Brian Quintenz criticized the SEC's position, saying that the SEC creates confusion in the legislation.

"I wonder at what point does the SEC realize that it will lose the war against ETH in the same way that it failed in the fight against XRP?" Garlinhouse wrote in X.

We are talking about the ongoing litigation between Ripple and the Securities Commission. At the end of 2020, the SEC accused Ripple of conducting an illegal ICO, claiming that XRP is an unregistered security. However, in July 2023, Ripple won a partial victory — the court of the Southern District of New York ruled that XRP sold on the secondary market are not considered investment contracts.


Read More