A recent statement from Ripple CEO Brad Garlinghouse has sent shockwaves through the crypto ecosystem. By openly supporting Ethereum against the SEC’s stringent classifications, Garlinghouse is not just defending a digital currency; he is laying a cornerstone in the debate over the legitimacy and future of cryptos as independent financial instruments.
The recent stance by Garlinghouse is not merely a simple endorsement of Ethereum. It represents an open criticism of the SEC’s approach, which he sees as stifling crypto innovation.
By calling Gary Gensler, chairman of the SEC, an “unethical character,” he highlights the growing tensions between crypto giants and regulators.
Garlinghouse’s defense is rooted in a personal and professional battle, with Ripple itself in the SEC’s crosshairs since the 2020 accusation that classified XRP as a security.
By supporting Ethereum, Garlinghouse aims at several targets. He is not only seeking to clarify Ripple’s legal situation but also to form a coalition. This coalition opposes regulations seen as arbitrary in the crypto industry.
This alliance is strategic. It bolsters the arguments against classifying cryptos as securities, a status that would bring additional regulatory restrictions and obligations.
In this legal and media battle, Consensys stands out. As a key player in Ethereum’s software development, the company vigorously defends ETH’s non-classification as a security.
Furthermore, their recent legal action against the SEC for abuse of power reinforces this position. It builds on earlier SEC statements that exempted ETH from such regulation.
The Counterbalance
Amid this wave of support, Steven Nerayoff, a former advisor to Ethereum, emerges as a dissenting voice. Describing Ethereum’s crypto as “unquestionably” a security.
As reported by Coinpedia, his comments inject a dose of realism into this spirited and polarized debate. Nerayoff’s perspective reminds us that the road to a clear legal and regulatory definition is fraught with challenges.
The regulatory evolution around Ethereum is not just limited to statements and lawsuits. The possible approval of an ETF based on this crypto would be a major validation, although experts like Justin Sun and Eric Balchunas are skeptical of its short-term realization. Balchunas’s estimate of a 25% probability for the approval of this ETF illustrates the SEC’s caution, which remains a thorn in the side of the sector’s rapid development.
