- Ripple CEO Brad Garlinghouse recently commented on the classification of digital assets, particularly XRP and Ethereum (ETH).
- During a fireside talk at the XRP Las Vegas conference, Garlinghouse asserted that neither XRP nor Ethereum should be considered securities.
- This statement aligns with Ripple’s long-standing argument and comes at a critical time when regulatory bodies are scrutinizing the crypto market.
Ripple CEO Brad Garlinghouse has made a definitive statement on the classification of XRP and Ethereum, asserting that neither should be considered securities. This comes amidst increased scrutiny from regulatory bodies on the crypto market.
Garlinghouse’s Statement on Crypto Classification
During a recent fireside talk with Michael Arrington, founder of Arrington Capital, at the XRP Las Vegas conference, Garlinghouse made it clear that he believes neither XRP nor Ethereum should be considered securities. This statement aligns with the long-standing argument presented by Ripple and other stakeholders in the crypto community.
Context: Ripple’s Ongoing Legal Battle with the SEC
Ripple’s ongoing legal battle with the SEC has put the company in the spotlight, making its CEO’s opinions particularly noteworthy. Garlinghouse’s remarks come at a critical time when regulatory bodies are scrutinizing the crypto market, with several discussions arising in the crypto space as regards this. In the week, reports surfaced of MicroStrategy chairman Michael Saylor speculating that the SEC may regard Ethereum, BNB, SOL, XRP and ADA as unregistered crypto asset securities.
The Crypto Security Debate
The debate over whether crypto assets such as XRP and Ethereum (ETH) should be classified as securities has been a point of contention within the cryptocurrency community for years. However, XRP gained legal clarity in the Ripple lawsuit in July 2023, when the judge ruled that XRP was not a security in itself. However certain XRP institutional sales were found to be unregistered securities sales.
Recent Developments: Consensys Lawsuit Against the SEC
A recent twist in the crypto security debate emerged when Ethereum software company Consensys filed a lawsuit against the SEC, revealing that the SEC believes Ethereum is an unregistered security — and has been conducting investigations on that premise for the past year. Consensys sought a judge to declare Ethereum a non-security, preempting any future SEC claims.
Conclusion
As the crypto market continues to evolve, the classification of digital assets remains a hotly debated topic. Ripple CEO Brad Garlinghouse’s recent comments highlight the ongoing contention surrounding the status of XRP and Ethereum. With regulatory bodies intensifying their scrutiny of the crypto market, these discussions are likely to remain at the forefront of the crypto space.
