Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty Show Support for Ethereum Amid SEC Investigations
Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have voiced their support for Ethereum as the U.S. Securities and Exchange Commission (SEC) opens investigations against the Ethereum Foundation. This comes as the SEC attempts to classify Ether (ETH) as a security, sparking a legal battle.
While some may find it surprising that Ripple executives are backing Ethereum, considering the anti-XRP responses from Ethereum creator Vitalik Buterin during the SECโs lawsuit against Ripple in 2020, Garlinghouse and Alderoty are making their stance clear.
Ripple CEO Brad Garlinghouse Believes SEC Will Face Similar Defeat as with XRP
The SEC has faced criticism from the crypto community and congressmen for its investigations into companies associated with Ethereum, including the Ethereum Foundation. Many view these actions as regulatory efforts to label Ether (ETH), the second-largest cryptocurrency, as a security. Experts argue that this move is politically motivated, especially after Prometheum, the only U.S. SEC-registered crypto securities platform, announced plans to custody Ethereum (ETH).
Garlinghouse confidently states that the SEC is losing its battles in court as it continues to pick fights with the crypto industry. He points out that they are now fighting fellow regulators like the Commodity Futures Trading Commission (CFTC) and falling behind international counterparts. He expresses concerns that the SEC fails to recognize that they will likely lose against ETH, just as they did with XRP.
Ripple CLO Stuart Alderoty Calls for Congressional Intervention
Stuart Alderoty supports Brad Garlinghouseโs position and goes a step further by urging Congress to intervene. He believes that Congress should stop funding the SEC, referring to their actions as โinsanity.โ
Alderoty has been a vocal critic of the SECโs regulatory actions and policies under the leadership of Gary Gensler. He recently accused the SEC of misleading the court and abusing its power in the Debt Box case.
SECโs Conflict with CFTC over Ethereum
Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), testified before the House Committee on Agriculture and contradicted the SECโs claim that ETH should be classified as a security. Behnam stated that both Bitcoin and Ether are commodities, disagreeing with Prometheumโs plan to offer ETH custody services.
Former CFTC Commissioner Brian Quintenz also voiced his concerns about the SECโs approach to Ethereum. He highlighted that the SEC previously acknowledged Ethereumโs non-security status and its lack of jurisdiction over it. The current shift in stance is confusing and detrimental to investors. Quintenz also criticized potential delays or denials of Ethereum ETFs by the SEC, considering that they have already approved Ethereum futures ETFs, deeming their decision โillegal.โ
Hot Take: Ripple Executivesโ Support for Ethereum Reflects Broader Crypto Unity ๐
The recent support for Ethereum from Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty highlights a sense of unity within the crypto industry. Despite past disagreements between Ripple and Ethereum, these executives recognize the importance of standing together against regulatory actions that could negatively impact cryptocurrencies.
This show of support not only strengthens Ethereumโs position but also sends a powerful message to regulators like the SEC. It demonstrates that even competitors can find common ground in defending the crypto ecosystem as a whole.
As the legal battles continue and regulatory scrutiny intensifies, it is crucial for crypto participants to unite and advocate for fair and clear regulations. This solidarity will help protect the industry from undue restrictions and foster its growth and innovation.
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